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Market Mood Index

Is the Indian stock market driven by Fear or Greed today? Our free sentiment gauge tells you instantly.

Updated 2 days ago

Market Mood Index (MMI)

EXTREME FEARFEARGREEDEXTREME GREED
62.00
Updated 5 hours ago

Component Breakdown

Nifty Trend12/25
Flat Nifty
Bank Nifty Trend10/15
Positive Bank trend
India VIX20/20
Low Volatility (Complacency)
Market Breadth20/40
Mixed breadth

7-Day Trend

Prev Close73
Change-11

Understanding the Market Mood Index

The stock market is not just driven by numbers — it is driven by emotions. When investors are fearful, they sell quality stocks at irrational discounts. When they are greedy, they buy overvalued stocks at premium prices. The Market Mood Index (MMI) captures this emotional temperature of the Indian stock market and presents it as a single, actionable number between 0 and 100.

Warren Buffett famously said, “Be fearful when others are greedy, and greedy when others are fearful.” The MMI operationalises this principle. When the gauge dips into the Extreme Fear zone (0-20), it historically indicates that the market is oversold and a bounce may be near. When it pushes into Extreme Greed (80-100), the market is often due for a correction. Of course, no indicator is infallible — but sentiment data gives you an edge that pure price charts cannot.

The Stocksbaaz MMI is specifically calibrated for the Indian market. Unlike global sentiment tools that track the S&P 500 or NASDAQ, our index uses Indian-specific signals: the Nifty 50 trend, Bank Nifty performance, India VIX (volatility index), and the advance-decline ratio of NSE-listed stocks. This makes it directly relevant for anyone trading or investing in Indian equities.

How is the MMI Calculated?

Nifty 50 Trend
25 pts

Measures the direction and strength of the Nifty 50 index. A strong uptrend contributes to Greed, a sharp decline contributes to Fear.

India VIX
20 pts

The volatility index measures market fear. Low VIX (below 13) signals complacency/greed. High VIX (above 20) signals fear and uncertainty.

Market Breadth
20 pts

Tracks the ratio of advancing vs declining stocks. Broad participation in a rally signals healthy greed. Narrow rallies signal hidden fear.

Bank Nifty Trend
15 pts

The banking sector is the backbone of the Indian market. A strong Bank Nifty usually confirms overall market strength.

52-Week Highs vs Lows
20 pts

More stocks hitting 52-week highs indicates bullish momentum (greed). More stocks hitting 52-week lows indicates bearish momentum (fear).

Frequently Asked Questions

What is the Market Mood Index (MMI)?
The Market Mood Index is a composite sentiment indicator that measures the overall mood of the Indian stock market on a scale of 0 to 100. A score below 30 suggests the market is driven by fear (prices may be undervalued), while a score above 70 indicates greed (prices may be overheated). The MMI combines five key market signals — Nifty trend, Bank Nifty trend, India VIX, market breadth, and 52-week highs vs lows — to produce a single, easy-to-understand number.
How is the Stocksbaaz MMI calculated?
Our MMI is calculated using five equally important market signals: (1) Nifty 50 trend direction and strength (25 points), (2) Market breadth — the ratio of advancing vs declining stocks (20 points), (3) India VIX or volatility index — lower VIX means more complacency/greed, higher VIX means more fear (20 points), (4) Bank Nifty trend — a proxy for financial sector health (15 points), and (5) 52-week highs vs lows — more stocks hitting yearly highs indicates greed (20 points). The total gives a score out of 100.
What do the different MMI zones mean?
The MMI has five distinct zones: Extreme Fear (0-20) suggests panic selling and potential buying opportunities for contrarian investors. Fear (21-40) indicates cautious markets with below-average sentiment. Neutral (41-60) means the market is balanced with no strong emotional bias. Greed (61-80) signals bullish sentiment — caution is advised for new entries. Extreme Greed (81-100) warns of euphoria and potential market tops — this is historically when corrections begin.
How should I use the MMI for investing?
The MMI is best used as a contrarian indicator. When the index shows Extreme Fear, historically that has been a good time to buy quality stocks at discounted prices. When the index shows Extreme Greed, it is wise to book partial profits and avoid aggressive new positions. However, the MMI should never be used in isolation. Always combine it with fundamental analysis, technical charts, and your own risk appetite before making investment decisions.
How often is the Market Mood Index updated?
The Stocksbaaz Market Mood Index is updated once daily during market hours (Monday to Friday). After the Indian stock market closes at 3:30 PM IST, the final reading for the day is stored. The page re-validates every 60 seconds to show the most recent data available.
What is a 'Market Regime' and how is it determined?
A market regime describes the broader market condition based on the MMI score. We classify five regimes: 'Oversold' (MMI below 20, prices may be stretched to the downside), 'Bearish Control' (MMI 20-40, sellers dominate), 'Balanced' (MMI 40-60, no clear direction), 'Healthy Bullish' (MMI 60-80, steady uptrend with participation), and 'Overheated' (MMI above 80, euphoria that often precedes corrections). Knowing the current regime helps you calibrate your position sizing and strategy.
Is the Market Mood Index the same as the CNN Fear and Greed Index?
While inspired by the CNN Fear and Greed Index (which tracks the US stock market), the Stocksbaaz MMI is specifically designed for the Indian stock market. It uses Indian market indicators like Nifty 50, Bank Nifty, and India VIX. The methodology and weightings are tailored to NSE dynamics, making it far more relevant for Indian investors than any US-focused sentiment tool.
Can the MMI predict market crashes?
The MMI cannot predict crashes with certainty — no indicator can. However, historically, sustained readings in the Extreme Greed zone (above 80) have often preceded market corrections. Similarly, sustained readings in the Extreme Fear zone (below 20) have often marked market bottoms. Think of the MMI as a warning signal, not a crystal ball. It tells you when the market is emotionally stretched, which statistically increases the probability of a reversal.
What is the 'What Changed Today' section?
The 'What Changed Today' section shows the key factors that moved the MMI score from yesterday's reading. These are displayed as reason chips — short descriptions like 'Strong Nifty momentum', 'High Volatility (Fear)', or 'Broad market participation'. This helps you understand not just what the score is, but why it changed, making your analysis more informed.
Is the Stocksbaaz Market Mood Index free?
Yes, the Stocksbaaz Market Mood Index is completely free and always will be. We believe retail investors in India deserve access to sentiment tools that were previously available only to institutional traders. No registration, no subscription, no hidden charges.