RBI policy announcement may indicate market direction

Indian equity markets may open on a flattish note on Wednesday, tracking mixed cues from Asian peers. The SGX Nifty, which was trading with gains of 10 points at 9,686, indicated that domestic bourses may open flat.
 
The level of 9,700-9,710 may continue to act as a hurdle for the bulls. However, if Nifty50 holds above this level, it is likely to scale up to the level of 9,750. On the downside, the support for Nifty50 index is placed in the region of 9,620-9,630, and if this support is breached, it is likely to slide down to the level of 9,550.
 
Market participants will keep an eye on the RBI policy due to be announced today.
 
Back home, Indian markets opened the session in positive territory and Nifty scaled to a milestone of 9,700, as it touched a high of 9,709 at the opening bell. But, thereafter, sentiments turned pessimistic and indices closed the day on a negative note as investors and traders resorted to profit-booking at higher levels.
 
The US stocks ended the Tuesday’s session marginally lower. The Dow Jones Industrial Average dropped 48 points to end at 21,136. The S&P 500 index declined 7 points to close at 2,430. The Nasdaq Composite index slid 21 points to close at 6,275.
 
Asian shares are trading mixed in early trading on Wednesday. Japan’s Nikkei 225 has slipped 44 points, Hong Kong’s Hang Seng has surged 62 points, while China’s Shanghai Composite has gained 21 points.