Understanding Market Sentiment
Market sentiment is the collective mood of participants. It can push prices well beyond what fundamentals justify in either direction, which is why traders track it closely.
Institutional flows
Foreign and domestic institutional flows are published daily. Sustained buying or selling often signals a shift in risk appetite.
India VIX
India VIX reflects expected volatility in NIFTY options. Rising VIX usually accompanies uncertainty; very low VIX can signal complacency.
Market breadth
The ratio of advancing to declining stocks shows whether a move is broad-based or driven by a handful of heavyweights.
Global cues and events
US markets, crude oil, the rupee and central bank decisions frequently set the tone for the opening session.
This article is educational and is not a recommendation to buy or sell any security.
This article is for educational and informational purposes only and is not a recommendation to buy or sell any security. Investment in securities market are subject to market risks. Read all the related documents carefully before investing.