Tickertape

• FII Activity - Higher than average value suggests bullish FII view about the market
• Volatility and Skew - High VIX (volatility index) value suggests that market participants are expecting increased risk and volatility in the market. In terms of market direction, a higher than average value of skew represents a high chance of downward movement
• Momentum  - A positive value indicates an uptrend and vice versa
• Market Breadth - A relatively low value (<1) indicates a strong market move supported by volumes
• Price Strength - Higher value indicates better price strength in the market
• Demand for gold - If the return of gold is increasing relative to Nifty 50, it indicates a movement away from equities into safer commodities like gold
  
  
  

Methodology

• The 45 trading day rolling average and standard deviation of each of the components is calculated
• The current values of the indicators are compared with rolling averages to see how far they are from the mean, in standard deviation terms
• All components are normalised to bring everything on a scale of 0-100
• The final indicator value is calculated by giving equal weight to each of the components.

You can write to us at support@tickertape.in if you have any questions on MMI.