What caused heightened volatility in the Nifty 50 index?

Heightened volatility in the Nifty 50 index is anticipated due to the approaching February monthly F&O expiry and significant company-specific news.

What was the impact of the IDFC First Bank fraud disclosure?

IDFC First Bank plunged over 16% after disclosing a ₹590 crore fraud at its Chandigarh branch.

What are the key technical levels for the Nifty 50?

Key resistance for the Nifty 50 is observed around 25,800, with immediate support identified near 25,570.

Home / Business and Economy / Nifty volatility surges ahead of February expiry

Nifty volatility surges ahead of February expiry

23 Feb

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Summary

Nifty 50 index faced resistance near 50-day moving average.
IDFC First Bank plunged 16% due to a ₹590 crore fraud.
Analysts expect heightened volatility due to F&O expiry.

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.

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