The domestic equity indices continued to consolidate, as Sensex and Nifty fell for a second straight day today, after the RBI in MPC minutes raised concerns over rising global oil prices and inflation in the country. BSE Sensex lost 21.10 points or -0.06 per cent to close at 33,756.28 today while the Nifty50 ended 3.90 points or -0.04 per cent lower at 10,440.30 today.
The benchmark indices ended flat today after a choppy session following muted reaction of the Asian markets, and a Nomura report which said that the Reserve Bank of India's policy rates are likely to remain unchanged in 2018 despite higher inflation, a recovering growth, and elevated oil prices. Meanwhile, a CBI court verdict acquitted all accused, including former telecom minister A Raja, DMK member Kanimozhi and corporate executives, in the 2G case as the prosecution failed to prove the case against them.
Today was the second straight session when the opening level proved the day's high for the Nifty. The index moved in a 50-point range during the session, suggesting the consolidation was in place around the all-time high levels. At close, the NSE barometer formed a 'Bearish Belt Hold' pattern on the daily chart. We expect this consolidation to continue. The levels of 10,490 will continue to pose serious resistance, while on the downside, support at 10,330 level should hold this positive momentum.