H1 B Visa Interview, Rejected - Can I re appear?

I work for a well reputed world wide consulting firm in Australia and my employer has filed for my H1 in oct 2013. I got my H1 approved after an RFE in Dec 2013. My current Australia visa has expired and the renewal is in process. So I could not go for my visa stamping in Australia. My client wants me to travel asap so I appeared for my H1 visa interview in chennai consulate as I hold Indian passport. My visa got rejected. VO has asked me the reason for coming from Australia to chennai for the interview. I told him that I am visiting my parents here and would like to take this opportunity to attend for my visa interview as well. He asked me several other questions and I gave him proper answers. But he repeated his question about why did I come for Australia to chennai for visa interview and I gave him the same answer. After few more general questions he said that he can not give me visa at the moment. He did not give me an query form. Glad that he did not put any rejection stamp on my passport.
I hold an MBA degree from Australia.
As I have a valid I797, can I re appear for the interview in Australia? Please let me know the options i am left with. Any suggestions is much appreciated.