tickertape MMI

Description

(Unofficial)

The MMI is an investor sentiment tool that describes the current mood of the market.
MMI takes into account 7 important factors to give a complete 360 degree picture of the emotions driving the market.

FII Activity
This is the net open interest of FIIs in Index Futures on the NSE. Tracking movement in this indicator gives insight into FII views about the markets

Higher than average value suggests bullish FII view about the market

Volatility
Volatility is measured by the India VIX index. It is the implied volatility of 1 month Nifty options and is a measure of the market's expectation of volatility in the near term

High VIX value suggests that market participants are expecting increased risk and volatility in the market

Skew
Volatility only tells us that the markets are expecting some movement, but doesn't tell us anything about the direction. Skew is used to measure the expectations around market direction. It is calculated as the difference between implied volatilities (IV) of OTM put options and OTM call options of Nifty

So, a higher than average value of skew represents a high chance of downward movement


Momentum
It is the difference between 90D & 30D exponential moving averages of Nifty, divided by 90D moving average

A positive value indicates an uptrend and vice versa


Market Breadth
It is calculated by dividing AD Ratio by AD Volume (Modified Arms Index)

A relative low value indicates strong market move supported by volumes

Price Strength
It is tracked by subtracting % of stocks near their 52W low from % of stocks near their 52W high to calculate the net % of stocks near their 52W high

Higher value indicates better price strength in the market


Demand for Gold
It is the relative price return of Gold vs Nifty for last 2 weeks

If the return of gold is increasing relative to Nifty, it indicates a movement away from equities into safer commodities like Gold