Market Mood Index (MMI) for Indian Share Market

Abhifinowings
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This tool helps investors gauge real-time market sentiment based on key indicators like volatility, advance-decline ratios, and investor behavior.

Welcome to our comprehensive guide on the Market Mood Index (MMI), also known as the Fear and Greed Index for the Indian stock market. This tool helps investors gauge real-time market sentiment based on key indicators like volatility, advance-decline ratios, and investor behavior.

What is the Market Mood Index (MMI)?

The Market Mood Index (MMI) is a sentiment indicator that quantifies the emotional state of the Indian share market.

Market Mood Color Scale and Meanings

Our enhanced scale includes trading implications and historical context for better decision-making.

Mood Zone	Score Range	Color	What It Means	Trading Implication	Historical Example (India)
Extreme Fear	0-25	Red	High panic; investors are selling off due to uncertainty. Prices undervalued.	Buy opportunity (contrarian strategy).	March 2020 COVID crash (MMI ~18).
Fear	26-45	Orange	Caution prevails; market dips likely.	Hold or selective buys; avoid leverage.	August 2023 banking crisis fears (MMI ~35).
Neutral	46-55	Yellow	Balanced sentiment; no dominant emotion.	Monitor fundamentals; diversify.	Mid-2024 post-election stability (MMI ~50).
Greed	56-75	Green	Optimism rising; buying pressure increases.	Book profits on overvalued stocks.	January 2025 bull run (MMI ~65).
Extreme Greed	76-100	Dark Green	Overconfidence; bubble risks are high.	Sell or hedge; prepare for corrections.	Late 2021 tech boom (MMI ~85).

How to Use MMI for Trading: Advanced Strategies

Contrarian Approach: Buy in Fear zones (e.g., accumulate blue-chips like Reliance during dips).
Momentum Trading: Ride Greed waves with stop-losses (e.g., trail profits in autos during uptrends).
Integration Tips: Combine MMI with RSI/MA for signals; use in options (high VIX = buy puts).
Case Study: In March 2020 (Extreme Fear), investing ₹1 lakh in Nifty yielded 150% returns by 2022—MMI signaled the bottom.
Daily Routine: Check MMI pre-market; adjust portfolio if shifting zones.