Market Mood Index (MMI) for Indian Share Market: Fear and Greed Index Live Today

 

The Market Mood Index (MMI), also known as the Fear and Greed Index for the Indian stock market, is a powerful tool that helps investors gauge real-time market sentiment. By analyzing factors like volatility, advance-decline ratios, and investor psychology, MMI provides actionable insights for smarter trading. Updated daily, it reflects how fear and greed drive Nifty, Sensex, and sectoral performance.

Whether you’re a beginner or a seasoned trader, understanding the MMI can help you make informed investment decisions.

What is the Market Mood Index (MMI)?

The MMI(Market Mood Index) quantifies the emotional state of the Indian share market by aggregating multiple factors:

• Volatility Index (India VIX): Measures expected market fluctuations.

• Advance-Decline Ratio: Tracks the number of advancing versus declining stocks.

• Market Breadth: Analyzes volume and price momentum in major indices like Nifty 50 and Sensex.

• News and Social Sentiment: Evaluates headlines, social media, and investor surveys for optimism or pessimism.

• Economic Indicators: Considers GDP updates, inflation rates, and global cues (e.g., US Fed decisions affecting INR).

Unlike traditional metrics, MMI focuses on market psychology, reflecting Warren Buffett’s advice: “Be fearful when others are greedy, and greedy when others are fearful.”

Methodology: Weighted algorithm: 40% volatility, 30% breadth, 20% sentiment (via NLP tools), 10% economic overlays. Scores range 0-100, providing granular insight into market sentiment.

How Does the MMI Work?

MMI generates a daily score through a systematic approach:

1. Data Collection: Live feeds updated every 15 minutes during market hours.

2. Scoring: Each factor is scored individually (e.g., high VIX = fear points; rising advances = greed points).

3. Aggregation: The Weighted average produces the final MMI score.

4. Zoning: Categorized into five zones for easy interpretation.

This ensures timely and accurate sentiment tracking, reducing lag in volatile markets.

Today’s Market Mood (Live Update: September 26, 2025)

• MMI Score: 62/100 → Greed zone (moderate optimism)

• Key Drivers:

• VIX: 14.2 (moderate)

• Advance-Decline Ratio: 1.2:1 (more advancing stocks)

• Sentiment: Positive Q2 earnings; negative oil prices

Interpretation: The market shows optimism, with IT and Auto sectors leading gains. Retail participation is strong, reflecting moderate greed.

Market Mood Color Scale and Meanings

• Extreme Fear (0-25, Red): Panic selling; undervalued prices; buy opportunity

• Fear (26-45, Orange): Caution; dips likely; hold or selective buys

• Neutral (46-55, Yellow): Balanced sentiment; monitor fundamentals

• Greed (56-75, Green): Optimism; buying pressure rises; book profits selectively

• Extreme Greed (76-100, Dark Green): Overconfidence; sell or hedge

Today’s Market Performance Highlights (September 26, 2025)

• SENSEX: 80,818.32, -0.42%

• NIFTY 50: 24,766.10, -0.50%

• GOLD (24K): ₹11,488, +0.38%

• USD/INR: ₹88.692, -0.10%

Sector Snapshot: IT (+1.2%), Auto (+0.8%) leading; Banking (-0.7%) lagging.
Volume Trends: High mid-cap turnover, signaling retail greed.

Historical Market Mood Index Trends

• Last 7 Days: Greed (62) → Neutral (52) → Fear (40) → Greed (68) → Extreme Greed (78) → Greed (65) → Greed (62)

• Insights: MMI below 30 often precedes 10-15% rallies; above 80 signals 5-10% corrections (10-year backtest).
  
  

How to Use MMI for Trading

• Contrarian Approach: Buy in fear zones; accumulate blue-chip stocks.

• Momentum Trading: Ride greed waves with stop-losses.

• Integration Tips: Combine MMI with RSI, moving averages, or options strategies.

• Daily Routine: Check MMI pre-market; adjust portfolios if zone shifts.

FAQs

• Difference from Global Fear & Greed Index?
  MMI is India-focused.
  
  

• Update Frequency?
  Daily, with intraday previews.
  
  

• Predict Crashes?
  Signals risk, not timing.
  
  

• Free Tool?
  Yes; premium alerts available.
  
  

• Accuracy?
  ~75% correlation with Nifty over 5 years.
  
  

• Neutral Zone Use?
  Ideal for long-term holds.
  
  

• Intraday Trading?
  Yes, best for swing/positional trades.
  
  

• Historical Data?
  Downloadable CSV from our site.

The Market Mood Index (MMI) is a reliable indicator to gauge fear and greed in the Indian market. By monitoring the index alongside fundamentals and technical indicators, investors can make more informed decisions and avoid emotional pitfalls.