The Market Mood Index (MMI) takes into account the below factors to give a 360-degree picture of the emotions driving the market:
  • 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


  • 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.

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