Nifty volatility surges ahead of February expiry

The Nifty 50 index navigated a day of mixed signals, ultimately extending its rally for a second consecutive session but facing resistance near the 50-day moving average. Opening with a gap-up, the index retreated from intraday highs following news of a significant fraud at IDFC First Bank's Chandigarh branch, which caused the bank's stock to plunge over 16%.

Despite initial gains spurred by a US Supreme Court ruling, the Nifty pared its rally. However, it managed a recovery in the afternoon session, closing higher. Analysts suggest that a decisive move above 25,800 is crucial for further upside, with immediate support seen around 25,570.

Heightened volatility is expected as the February monthly F&O expiry approaches. Key index heavyweights saw varied performance, with Adani Ports and Kotak Mahindra Bank gaining, while Infosys and Wipro faced selling pressure. Hindustan Aeronautics Ltd. also saw a decline amid clarifications regarding LCA Tejas aircraft.