The domestic equity market ended on a negative note today after the RBI monetary policy committee maintained status quo and kept the repo rate unchanged at 6 per cent. BSE Sensex ended 205.26 points or -0.63 per cent lower at 32,597.18 and Nifty50 closed at 10,044.10 today, down -0.73 per cent or 74.15 points, with only 11 advances and 39 stocks closing in the red.
According to market experts, the apex bank took the decision after inflation figures jumped to a seven-month high and stronger economic growth reduced the need for monetary stimulus. RBI maintained a neutral stance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4% within a band of +/- 2 per cent, while supporting growth. The Central Bank retained economic growth projection for 2017-18 at 6.7% saying that the risks are evenly balanced. In August, the RBI made its only cut in 2017, of 25 basis points, and in October, it held.
Nifty50 today fell below its 100-day moving average and registered lower-top lower bottom formation for a sixth trading session. The index missed out on a chance of trend reversal after making a 'Doji' pattern in the previous session. On the daily chart, the index ended up making a bearish candle for a seventh straight session. However, during the session, the index respected the 10,030 level. The 50-pack index needs to stay above the 10,030-50 range to avoid a sharp correction towards 10,000-9,970 levels in the near term. A minor pullback action is likely to face resistance around 10,120-10,130 levels.