Investing MMI Sentiment

Tickertape MMI (Market Mood Index)

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Market Mood Index (MMI) is a composite indicator developed by Tickertape that gauges sentiment in Indian equity markets, ranging from “Extreme Fear” to “Extreme Greed”.

How it’s built

MMI aggregates multiple market indicators:

  • Volatility (VIX).
  • Momentum (price + advance-decline).
  • Demand-supply (FII / DII flows).
  • Sentiment surveys.

Each indicator is normalised and combined into a 0-100 score.

RangeMood
0-20Extreme Fear
20-40Fear
40-60Neutral
60-80Greed
80-100Extreme Greed

How investors use it

  • Contrarian signal: Extreme Fear may suggest buying opportunity; Extreme Greed may suggest caution.
  • Tactical timing: Less useful for short-term trades, more for sentiment overlay.
  • Indicator, not predictor: MMI doesn’t forecast direction; reflects current state.

Limits

  • Lagging: reflects recent state, not future.
  • Single-index: India-only; not global.
  • Contrarian use can be wrong in trending markets.
  • Should be one input among many, not sole decision basis.

For complex portfolio decisions, consult a SEBI-registered Investment Adviser.

See also

External references

References

  1. Tickertape, Market Mood Index methodology, tickertape.in.
  2. NSE, India VIX methodology, nseindia.com.

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