What is stock market sentiment?

1. Market sentiment is the behaviour or the attitude of a group of people about the economy or the market for a particular stock.

2. Market sentiment is bullish when prices are rising and bearish when prices are falling.

3. Market sentiment is not always based on fundamentals as sometimes emotion drives the market.

4. Day traders and technical analysts aim to profit from short-term price movements often caused by investor attitudes toward a security.

5. There are various indicators to measure market sentiment like the volatility index.

(Content on this page is courtesy Centre for Investment Education and Learning (CIEL). Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.)

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