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Market sentiment

Market Mood Index

The Market Mood Index shows whether investors are feeling fearful or greedy right now. It reads market emotion on a scale from Extreme Fear to Extreme Greed, so you can gauge sentiment at a glance before you trade.

What the zones mean

The index sits in one of four zones. Here is what each one says about how the market is feeling.

Extreme Fear

Below 30

Investors are very cautious and selling heavily. Prices may be oversold, which some traders read as a possible opportunity.

Fear

30 to 50

Caution dominates. Buying is subdued and investors are waiting for more clarity before committing.

Greed

50 to 70

Optimism is building. Investors are buying and pushing prices higher across the market.

Extreme Greed

Above 70

Investors are very bullish and buying aggressively. Markets may be overbought, which some treat as a caution signal.

Why market sentiment matters

Sentiment often moves markets before fundamentals do. When fear takes over, investors sell and prices can fall faster than the news justifies. When greed builds, buying can push valuations well ahead of earnings. The Market Mood Index puts that emotion on a single scale so you can read it quickly.

It rarely moves in isolation. A shift in mood usually shows up first in India’s most tracked benchmarks, so it helps to read the index alongside live levels of NIFTY 50, SENSEX and Bank Nifty. Extreme readings are best treated as a prompt to review your plan, not as a signal to act on their own.

Turn insight into action

Whatever the mood, opportunities exist across the market. Explore upcoming IPOs or dive into individual stocks to find your next idea.

FAQ

Frequently asked questions

Common questions about the Market Mood Index and how to read it.

What is the Market Mood Index?

The Market Mood Index is a single number, from 0 to 100, that summarises how investors are feeling. Low readings point to fear and high readings point to greed, so you can gauge overall sentiment at a glance.

What do the zones mean?

The scale is split into four zones: Extreme Fear (below 30), Fear (30 to 50), Greed (50 to 70) and Extreme Greed (above 70).

How should I use it?

Treat it as one input among many. Extreme fear can flag oversold conditions and extreme greed can flag overbought ones, but the index works best alongside your own research and risk plan, not as a standalone buy or sell signal.

Is the reading live?

The value updates periodically rather than tick by tick, and the page shows when it was last updated.

Does a high score mean I should sell?

Not on its own. A high score means sentiment is greedy, which some read as a caution sign, but sentiment can stay elevated for a while. Always combine it with your own analysis and risk tolerance.

Invest with a plan

Trade the market, not the mood.

Sentiment swings between fear and greed. A clear plan and the right tools help you act on data instead of emotion. Open a free Demat and trading account with Alice Blue.

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