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Market Update

Nifty : 25,960.55 -225.90 (-0.86%)

Sensex : 85,102.69 -609.68 (-0.71%)

* Equity benchmark declined nearly 1%, closing below 26000, snapping its two-day gaining streak as investors adopted caution ahead of the US Federal Reserve's rate decision on December 10. Persistent rupee weakness near 90.1 and continued FII selling exacerbated the downturn.

* Nifty dropped 0.9% or 225 points to close at 25960. Nifty 500 advance decline ratio is 1:9.

* All sectors ended lower, with Nifty Realty the major loser at 3.5% due to profit-booking, Godrej Properties plunged 5.1% to Rs.1,975, while Prestige Estates, Sobha, DLF, and Lodha fell 3-5%%.

* Midcaps, smallcaps, metals, and PSU banks weakened up to 3%, reflecting broad-based selling pressure.

* Nifty IT displayed some resilience amid hopes for a US Federal Reserve interest rate cut on December 10 but ultimately closed in the red

Technical Outlook:

* Nifty index opened negative and cascaded southwards right from the opening tick. The break of 25900 zones established seller’s dominance and the index faced exhaustion and failed to reclaim its morning highs. The index attempted some recovery in the last hour and managed to close near 25950 marks with losses of around 230 points.

* It formed a bearish candle on the daily frame and gave up its gains of the last two sessions. Now till it holds below 26000 marks, index may face some weakness towards 25800 then 25700 zones while hurdles have shifted lower to 26150 then 26250 zones.

Derivative Outlook:

* Nifty future closed negative with losses of 1.08% at 26050 levels. Positive setup seen in PB Fintech, TECHM, Wipro, SBI Life, AXIS Bank, BSE and Eicher Motors while weakness in Indigo, BDL, DLF, Lodha, HAL, Eternal, Mazdock, IEX, SAIL, Trent, Biocon, JSW Energy and Cipla.

* On option front, Maximum Call OI is at 26100 then 26200 strike while Maximum Put OI is at 25900 then 25800 strike. Call writing is seen at 26100 then 26000 strike while Put writing is seen at 25900 then 25850 strike. Option data suggests a broader trading range in between 25500 to 26400 zones while an immediate range between 25700 to 26100 levels.

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