City threw away a 1-0 lead to concede a Damien Duff goal just after half-time and were unable to make a breakthrough in what was a poor second-half performance.
Balotelli hit his ninth goal in 14 games for the club to give the hosts the lead against Mark Hughes' side but was largely wasteful after that, and the City manager admits that he was disappointed with his player's contribution.
He said: "I am not happy with Mario.
"I know him very well and I know he can play better. He can play for the team. He scored a fantastic goal but there were still 70 minutes left.
"He can't lose the ball all the time. Every time the ball went to the front, we didn't keep it."
The outspoken youngster has been inconsistent for the Eastlands outfit since joining from Inter in the summer, coupling some wonderful goals with a number of misdemeanours both on and off the pitch.
The draw leaves City trailing league leaders Manchester United by 10 points having played a game more and have now almost certainly ruled themselves out of the title race with only 10 games remaining.