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* The equity benchmark Sensex plunged over 1,000 points, and the Nifty fell below the 24,500 mark, driven by continued selling by foreign institutional investors (FIIs) and cautious investor sentiment ahead of the US Federal Reserve's policy rate decision on Wednesday. The Sensex dropped 1,064 points, or 1.3%, closing below the 81,000 mark at 80,684, while the Nifty fell 332 points, or 1.35%, to close at 24,336, compared to the previous day's close. Both Asian and European markets also saw declines as attention shifted to the Federal Reserve's upcoming policy decision, with traders hoping for insight into the Fed's interest rate plans, which could provide clarity on future market trends. Most major sectors, including auto, metal, banks, cement, and oil & gas, saw sharp declines, with Nifty auto, metal, banks, cement, and oil & gas stocks falling between 1-2%.

* However, realty, fertilizer, and hotel stocks saw fresh buying activity. Fertilizer stocks such as RCF, GSFC, and NFL gained between 1-4%. Hotel stocks rose on optimism surrounding wedding season demand and strong growth in meetings, incentives, conferences, and exhibitions activities. Indian Hotels, Chalet Hotels, and Lemon Tree Hotels gained between 1-2%. Realty stocks continued their rally due to strong demand and solid quarterly results, with Oberoi Realty, Sobha, Lodha, and Phoenix Mills gaining between 1-3%.

Technical Outlook:

* Nifty Index opened negative and cascaded throughout the session and slipped below to 24300 levels. Bears had control over the index right from the opening tick and it closed with losses of around 330 points. It formed a bearish candle on daily frame and has been making lower lows from the last two sessions.

* Now till it holds below 24500 zones weakness could be seen towards 24150 then 24000 zones whereas hurdles can be seen at 24500 and 24650 zones.

Derivative Outlook:

* Nifty future closed negative with losses of 1.36% at 24401 levels. Positive setup seen in Oberoi Realty, United Spirits, Max Health, LODHA, Prestige Estate, Indian Hotel, BSE, Zomato, MCX, Granules, Dixon and Coforge while weakness in Shriram Finance, L&T Finance, LIC Housing Finance, Bandhan Bank, MGL, Grasim, TVS Motor, Escorts, Hero Motocorp, Aurobindo Pharma, Tata Consumer Products, Adani Enterprise and Indusind Bank.

* On option front, Maximum Call OI is at 25000 then 26000 strike while Maximum Put OI is at 24000 then 23900 strike. Call writing is seen at 24500 then 24400 strike while Put writing is seen at 23900 then 24350 strike. Option data suggests a broader trading range in between 23900 to 24800 zones while an immediate range between 24100 to 24600 levels.

* Granules India - Company has received approval from the USFDA for its abbreviated new drug application (ANDA) for Lisdexamfetamine Dimesylate chewable tablets.

* ITC Hotels demerger to come into effect from January 1 - Company announced that as all approvals are in place the demerger of ITC Hotels will come into effect from 1st January 2025.

* Tata Motor – Company received an order to supply bus chassis to Uttar Pradesh State Road Transport Corp. As a part of the order, the company will supply 1,297 bus chassis

* Indoco Remedies – Company’s Goa facility has received warning letter from US FDA after it inspected the facility July 16-26,

* Sun Pharma Advanced to License Cancer Drug to Tiller for Equity – Company signed a binding letter of intent with University of California, San Francisco and Tiller Therapeutics for a pre-clinical cancer drug and intellectual property associated with the molecule

* JSW Steel Gets Control of $474 Million Bhushan Power Assets – Company said the Supreme Court has directed the Directorate of Enforcement to hand over the provisionally attached properties worth Rs4025cr ees ($474 million) from Bhushan Power and Steel Ltd.

* Tata Consumer Products - Tata Consumer Products “will calibrate” its plans to open Starbucks stores in the near term at a time when fewer customers are walking into its cafes in the world’s most populous country, Reuters reported citing its top boss. City dwellers in India are cutting spending on everything from cookies and coffee to fast food as persistently high inflation squeezes middle-class budgets, with wages failing to keep pace.

Global Market Update

* European Market - European equities fell on Tuesday as political uncertainty in France and Germany weighed on sentiment, with traders also bracing for Eurozone inflation data and a US rate decision due tomorrow.. UK, France and Germany Index decline 0.5% each.

* Asian Market - Most Asian markets fell Tuesday as attention turned to the Federal Reserve's upcoming policy decision, with traders hoping for guidance on its interest rate plans as president-elect Donald Trump prepares to take office. South Korea Index slipped over 1%. Both Japan and Hong Kong Index marginally decline

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