PSX Fear and Greed Index

The PSX Fear & Greed Index is a comprehensive sentiment analysis tool designed specifically for the Pakistan Stock Exchange (PSX). This innovative metric provides investors, traders, and financial analysts with real-time insights into market psychology, helping them understand whether the market is driven by fear or greed at any given moment.

How the Index Works

Our proprietary algorithm combines multiple data sources to calculate a single score ranging from 0 to 100, where:

0-25: Extreme Fear - Market is oversold, potential buying opportunity
25-45: Fear - Cautious sentiment, defensive positioning
45-55: Neutral - Balanced market conditions
55-75: Greed - Optimistic sentiment, growth-focused
75-100: Extreme Greed - Market may be overbought, consider taking profits

The index analyzes multiple key factors that influence market sentiment:

Market Momentum

Analyzes price movements and trends in the KSE-100 index to gauge market direction and investor confidence levels.

Market Volatility

Measures market uncertainty and price fluctuations. Higher volatility often indicates increased fear and uncertainty among investors.

News Sentiment

Analyzes sentiment from Pakistani business news sources to understand how media coverage affects market psychology.

Social Media Sentiment

Monitors discussions about PSX and Pakistani stocks on social platforms to capture retail investor sentiment and market buzz.

How to Use This Data for Better Trading Decisions

The PSX Fear & Greed Index serves as a contrarian indicator, helping investors identify potential market turning points and make more informed decisions:

When Fear Dominates (Score < 30)

This often presents buying opportunities as markets may be oversold. However, it's crucial to distinguish between temporary market corrections and fundamental issues affecting specific sectors or the broader economy.

When Greed Takes Over (Score > 70)

High greed levels may indicate the market is becoming overbought. This could be a signal to consider taking profits or reducing exposure to riskier assets, especially if the index has been in extreme greed territory for an extended period.

Important Note: The PSX Fear & Greed Index is a tool for market analysis and should not be used as the sole basis for investment decisions. Always combine this data with fundamental analysis, technical indicators, and your own risk tolerance when making trading decisions.

Why This Matters for Pakistani Investors

The Pakistani stock market is influenced by unique factors including political stability, economic policies, currency fluctuations, and regional dynamics. Our index provides localized insights that global fear and greed indicators cannot capture, making it an essential tool for anyone investing in PSX-listed companies.

PSX Fear & Greed Index