Which 6 quantitative factors drive the Market Mood Index calculation?

The MMI quant model aggregates 6 macro and technical inputs: (1) India VIX (implied volatility), (2) Foreign Institutional Investor (FII) cash flows, (3) Market Breadth (NSE advance-decline ratio), (4) Put-Call Ratio (PCR) from index options, (5) Price Momentum (50-DMA vs 200-DMA), and (6) Skew / safe-haven asset demand.

What does an "Extreme Fear" (<30) reading indicate for long-term investors?

Historically, an MMI reading in Extreme Fear (<30) indicates excessive market pessimism and oversold conditions. For disciplined long-term investors, systematic SIP allocations during Extreme Fear periods have statistically generated superior 1-year and 3-year risk-adjusted returns on benchmark Nifty 50 constituents.

How should traders approach an "Extreme Greed" (>70) reading?

An Extreme Greed reading (>70) signals market complacency, aggressive leverage, and overbought valuations. It cautions traders against chasing parabolic moves and suggests tightening trailing stop-losses, rebalancing high-beta allocations, or accumulating protective index puts.

Live Market Sentiment Updated: Sep 05, 3:30 PM IST

Market Mood Index (MMI) Today

Q: What does an "Extreme Fear" (<30) reading indicate for long-term investors?

Historically, an MMI reading in Extreme Fear (<30) indicates excessive market pessimism and oversold conditions. For disciplined long-term investors, systematic SIP allocations during Extreme Fear periods have statistically generated superior 1-year and 3-year risk-adjusted returns on benchmark Nifty 50 constituents.

Quantitative sentiment gauge for Indian equities. Tracks extreme emotions, India VIX volatility, institutional flows, and optimal entry zones.

Current StatusFear (42.9)

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Indian Market Sentiment Gauge

Real-time score calibrated from 0 (Extreme Panic) to 100 (Extreme Greed)

Fear

42.9/ 100

Cautious consolidation — Defensive positioning across large caps and low-beta equities.

Consolidation Zone — Accumulate selectively on key support levels.

Past 5 Trading Days (Hover/Click to Flip)Sep 5

MON

MMI38▼

MON

TUE

MMI35▼

TUE

WED

MMI27▼

WED

THU

MMI40▲

THU

FRI

MMI43▲

FRITODAY

0 — 30Extreme Fear

30 — 50Fear

50 — 70Greed

70 — 100Extreme Greed

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Macro Sentiment Drivers

Real-time Readings

India VIX (Volatility)

13.4 Low Vol

FII Net Cash Flow

+₹1,420 Cr

Put-Call Ratio (PCR)

0.88 Cautious

Nifty 50 vs 50-DMA

+0.4% Support

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MMI Trend vs Nifty 50

Compare Market Mood Index sentiment extremes with benchmark index movement

Date Selected

Sep 05

MMI Score

42.9 / 100

Market Zone

Fear (Consolidate)

Nifty 50 Level

25,235

MMI Index

Nifty 50 (RHS)

Avg: 43.6Min: 26.8Max: 67.4

6-Factor Quant Decomposition

Mathematical weights and real-time readings powering the Market Mood Index

Equal-Weighted 16.7% each

India VIX (Volatility)Calm / Greed

13.4 Low Vol

Measures 30-day expected volatility in Nifty options. Spikes indicate sudden risk hedging.

Weight: 16.7%Score: 70/100

Price Momentum (50-DMA)Consolidation

+0.4% at 50-DMA

Nifty 50 closing price compared against its institutional 50-day moving average.

Weight: 16.7%Score: 46/100

Put-Call Ratio (PCR)Balanced Hedging

0.88 (Cautious)

Total Puts vs Calls Open Interest. Ratios under 0.70 historically indicate fear bottoms.

Weight: 16.7%Score: 44/100

Market Breadth (NSE 500)Mixed Breadth

49% Advancing

Percentage of advancing vs declining shares across the broader NSE 500 universe.

Weight: 16.7%Score: 48/100

FII / DII Net Cash FlowInstitutional Inflow

+₹1,420 Cr

Net daily cash market purchases and sales by Foreign Institutional Investors.

Weight: 16.7%Score: 64/100

Safe Haven Demand (Gold Skew)Neutral Allocation

Balanced Skew

Rolling relative return divergence between Gold ETFs and benchmark equities.

Weight: 16.7%Score: 50/100

Trading Playbook

How to Trade using the Market Mood Index

The MMI is a contrarian indicator. Most retail traders lose money by buying at market peaks (Extreme Greed) and panic-selling at market bottoms (Extreme Fear).

Extreme Fear (< 30) — High Probability Buy

Retail traders are in total capitulation. Quality stocks trade at steep discounts. Historically, buying lump sums or boosting SIPs in this zone gives highest multi-year returns.

Extreme Greed (> 70) — Book Profits & Protect

Market is overheated and overleveraged. Don't chase speculative small caps. Trail stop-losses tightly and book partial profits into cash or liquid funds.

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Frequently Asked Questions about MMI

Market Mood Index (MMI) Quant Guide

Understand institutional sentiment dynamics, India VIX correlation, and multi-factor analysis.

The Market Mood Index (MMI) is a quantitative sentiment indicator engineered specifically for the Indian equity markets (NSE/BSE). It measures investor psychology on a scale of 0 to 100, categorizing market mood into Extreme Fear (0-30), Fear (30-50), Greed (50-70), and Extreme Greed (70-100).

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