https://v2.webnotes.in/tags/sentiment/Recent content in Sentiment on WebNotesHugoen-INWed, 20 May 2026 00:00:00 +0000https://v2.webnotes.in/tickertape-mmi-market-mood-index/Wed, 20 May 2026 00:00:00 +0000https://v2.webnotes.in/tickertape-mmi-market-mood-index/<p><strong>Market Mood Index (MMI)</strong> is a composite indicator developed by Tickertape that gauges sentiment in Indian equity markets, ranging from &ldquo;Extreme Fear&rdquo; to &ldquo;Extreme Greed&rdquo;.</p> <h2 id="how-its-built">How it&rsquo;s built</h2> <p>MMI aggregates multiple market indicators:</p> <ul> <li>Volatility (VIX).</li> <li>Momentum (price + advance-decline).</li> <li>Demand-supply (FII / DII flows).</li> <li>Sentiment surveys.</li> </ul> <p>Each indicator is normalised and combined into a 0-100 score.</p> <table> <thead> <tr> <th>Range</th> <th>Mood</th> </tr> </thead> <tbody> <tr> <td>0-20</td> <td>Extreme Fear</td> </tr> <tr> <td>20-40</td> <td>Fear</td> </tr> <tr> <td>40-60</td> <td>Neutral</td> </tr> <tr> <td>60-80</td> <td>Greed</td> </tr> <tr> <td>80-100</td> <td>Extreme Greed</td> </tr> </tbody> </table> <h2 id="how-investors-use-it">How investors use it</h2> <ul> <li><strong>Contrarian signal</strong>: Extreme Fear may suggest buying opportunity; Extreme Greed may suggest caution.</li> <li><strong>Tactical timing</strong>: Less useful for short-term trades, more for sentiment overlay.</li> <li><strong>Indicator, not predictor</strong>: MMI doesn&rsquo;t forecast direction; reflects current state.</li> </ul> <h2 id="limits">Limits</h2> <ul> <li>Lagging: reflects recent state, not future.</li> <li>Single-index: India-only; not global.</li> <li>Contrarian use can be wrong in trending markets.</li> <li>Should be one input among many, not sole decision basis.</li> </ul> <p>For complex portfolio decisions, consult a SEBI-registered Investment Adviser.</p>