Market Mood Index (MMI) for Indian Share Market

What is the Market Mood Index (MMI)?

The MMI(Market Mood Index) quantifies the emotional state of the Indian share market by aggregating multiple factors:

How Does the MMI Work?

MMI generates a daily score through a systematic approach:

1. Data Collection: Live feeds updated every 15 minutes during market hours.

2. Scoring: Each factor is scored individually (e.g., high VIX = fear points; rising advances = greed points).

3. Aggregation: The Weighted average produces the final MMI score.

4. Zoning: Categorized into five zones for easy interpretation.

This ensures timely and accurate sentiment tracking, reducing lag in volatile markets.

Today’s Market Mood (Live Update: September 26, 2025)

• MMI Score: 62/100 → Greed zone (moderate optimism)

• Key Drivers:

• VIX: 14.2 (moderate)

• Advance-Decline Ratio: 1.2:1 (more advancing stocks)

• Sentiment: Positive Q2 earnings; negative oil prices

Interpretation: The market shows optimism, with IT and Auto sectors leading gains. Retail participation is strong, reflecting moderate greed.

Market Mood Color Scale and Meanings

• Extreme Fear (0-25, Red): Panic selling; undervalued prices; buy opportunity

• Fear (26-45, Orange): Caution; dips likely; hold or selective buys

• Neutral (46-55, Yellow): Balanced sentiment; monitor fundamentals

• Greed (56-75, Green): Optimism; buying pressure rises; book profits selectively

• Extreme Greed (76-100, Dark Green): Overconfidence; sell or hedge

Historical Market Mood Index Trends

• Last 7 Days: Greed (62) → Neutral (52) → Fear (40) → Greed (68) → Extreme Greed (78) → Greed (65) → Greed (62)

Insights: MMI below 30 often precedes 10-15% rallies; above 80 signals 5-10% corrections (10-year backtest).

How to Use MMI for Trading

• Contrarian Approach: Buy in fear zones; accumulate blue-chip stocks.

• Momentum Trading: Ride greed waves with stop-losses.

• Integration Tips: Combine MMI with RSI, moving averages, or options strategies.

Daily Routine: Check MMI pre-market; adjust portfolios if zone shifts.

FAQs

• Difference from Global Fear & Greed Index?
  MMI is India-focused.
  
  

• Update Frequency?
  Daily, with intraday previews.
  
  

• Predict Crashes?
  Signals risk, not timing.
  
  

• Free Tool?
  Yes; premium alerts available.
  
  

• Accuracy?
  ~75% correlation with Nifty over 5 years.
  
  

• Neutral Zone Use?
  Ideal for long-term holds.
  
  

• Intraday Trading?
  Yes, best for swing/positional trades.
  
  

• Historical Data?
  Downloadable CSV from our site.