"La La Land", a candy-colored romance about two struggling dreamers in Hollywood, earned nods for best picture, best director for 32-year old Damien Chazelle and best actress and actor nods for its lead stars, Emma Stone and Ryan Gosling at the nominations.
The Academy, which faced a lot of criticism for its lack of diversity for last two years, addressed the topic by nominating actors like Denzel Washington, Octavia Spencer, Viola Davis, Ruth Negga, Mahershala Ali, Patel, Naomie Harris and films like "Hidden Figures" and "Fences" and "13th".
"I'm sitting here with my mouth wide open figuring out how this happened. I'm feeling overwhelmingly grateful right now," he said.
"La La Land" will face competition at the Academy awards next month from sci-fi drama "Arrival" and "Moonlight", with both landing a total of eight nominations.
Actor-director Mel Gibson, who was made an outcast for his anti-Semitic rants in the past, signalled his comeback to Hollywood with war drama "Hacksaw Ridge". The film surprised award pundits by scoring six nods, including the best picture, director and best actor for Andrew Garfield.
Lonergan is nominated for best original screenplay and for his direction with Casey bagging a nod in the best actor category. Michelle Williams was nominated in the best supporting actress category.
Casey, who stars in "Manchester by the Sea", is a front-runner already after picking up a Golden Globe and a bunch of critics honors but previous best actor Oscar-winner Washington and Gosling may upset his sprint with their powerful portrayals in "Fences" and "La La Land". Garfield and Viggo Mortensen are the other nominees in the category.
She was nominated in the best actress category for her role of tone-deaf opera singer "Florence Foster Jenkins". Her competition is French actress Isabelle Huppert for ("Elle"), Natalie Portman as the first lady ("Jackie"), Ruth Negga ("Loving") and Stone ("La La Land").
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