The Prime Daily: 16 September 2026

Authored By Prime Research | Published at: Sep 16, 2026 09:40 AM IST

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Nifty Plunges Below Key Support as Broad-Based Selling Intensifies

U.S. stocks fell Tuesday as investors braced for the Federal Reserve’s policy decision and Treasury yields surged to multiyear highs.

The Nasdaq Composite lost 0.78%, the Dow slipped 0.63%, and the S&P 500 shed 0.45%, pressured by the 10-year Treasury yield’s climb above 5.04%. Germany’s 10-year Bund yield also rose to 3.57%, adding to the pressure on global equity valuations.

Brent crude traded above $108 a barrel after Saudi Arabia cancelled part of its September oil shipments to Europe, stoking fears that tighter supply will keep inflation elevated across major economies.

Gold broke below key technical support to trade under $4,300 an ounce, weighed down by a stronger dollar and expectations of further Fed tightening.

Markets are pricing in a 25-basis-point Fed hike, to a 3.75%–4.00% range — a move that would widen the policy gap with the ECB’s 2.50% deposit rate to roughly 150 basis points and could mark the start of a new hiking cycle.

The dollar’s advance has pushed EUR/USD down about 0.8% over four straight sessions to near 1.153, its weakest level in roughly a month.

The Indian rupee extended its losing streak for a fifth consecutive session, pressured by rising global bond yields and higher crude oil prices amid ongoing supply disruptions. The rupee closed at 95.96 against the US dollar yesterday, depreciating by 40 paise.

Nifty continued its downward journey, falling 279 points to close at 23,118—the lowest level since 6 April 2026. Nifty has breached the crucial support level of 23,172, which corresponds to the 61.8% retracement of the rally that began in April 2026 and continued until early August 2026. The next important support zone is placed near 22500-22,700, marked by an upward-sloping trend line joining the swing lows of June 2024, April 2025, and April 2026. The resistance zone for the index remains near 23,600.

Indian equities are poised for a cautious open, on the back of weak global cues.

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