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The equity benchmarks, Sensex and Nifty, closed slightly lower as heavyweight stocks like Reliance Industries, along with auto and FMCG sectors, continued to weigh on the market for the second consecutive day. While banking stocks, especially from HDFC Bank, along with metal and IT stocks, offered some support, they were not enough to push the indices higher. However, investor interest shifted towards mid-cap and small-cap stocks, particularly in the hotel and gems & jewelry sectors, which posted strong gains. The Nifty dropped by 58 points or 0.25%, closing at 24,619, while the Sensex declined by 200 points, or 0.25%, ending at 81,508. The Nifty Midcap 100 rose by 0.51% to 59,002, marking its seventh consecutive session of gains. Similarly, the Nifty Smallcap 100 continued its rally for the 12th day, inching up by 0.20%. On the global front, Asian markets were mixed, while European markets gained on the expectation of further stimulus announcements from China. The US market closed at a record high on Friday, driven by hopes that the US Federal Reserve may cut interest rates in its upcoming December 18, 2024 meeting.

FMCG stocks took a sharp hit after Godrej Consumer reported a muted outlook for Q3FY25. The Nifty FMCG Index fell more than 2%, with Godrej Consumer projecting mid-single-digit organic sales growth in the October-December period (Q3), citing weak demand conditions in India. Godrej Consumer's stock dropped over 9%, followed by declines in Marico, Hindustan Unilever, Tata Consumers, Dabur India, Colgate, and Britannia, which fell between 2% and 5%. Metal stocks witnessed fresh buying on the expectation of further stimulus announcements from China. Hindalco, National Aluminum, SAIL, Jindal Steel gained between 1- 3%. Nifty Metal Index gained by 0.6%

Technical Outlook:

Nifty Index opened on a negative note and showed volatility within a 100 point range during the first half of the session. In the latter part of the day, the index moved sideways showing limited momentum and a lack of clear direction. It formed a small bodied candle on daily timeframe and closed with losses of around 60 points. Now it has to hold above 24500 zones for an up move towards 24700 then 24850 zones whereas supports can be seen at 24500 and 24400 zones.

Derivative Outlook:

Nifty future closed negative with loss of 0.34% at 24698 levels. Positive setup in Supreme Industries, CAMS, Angel One, Voltas, Dr LalPath Labs, Hindustan Copper, LT, Max Healthcare, SAIL, Wipro, Jindal Steel and HAL while weakness in Godrej Consumer product, PVR Inox, Marico, Tata Consumer, RBL Bank, Suntv, Havells, PI Industries, OIL, IDFC First Bank, Asian Paints, IndusInd Bank and Britannia.

• On option front, Maximum Call OI is at 25000 then 24700 strike while Maximum Put OI is at 24000 then 24200 strike. Call writing is seen at 24700 then 25000 strike while Put writing is seen at 24600 then 24000 strike. Option data suggests a broader trading range in between 24100 to 25000 zones while an immediate range between 24300 to 24800 levels.

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