PCR

How to Read Put Call Ratio — A Simple Guide for Indian Traders

5 min read · For Nifty & Bank Nifty options traders

Today's PCR

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The problem most traders have with PCR

You open NSE's option chain, see a PCR of 1.35, and think "lots of puts = bearish market." You sell your calls. The market rallies 1%. You're confused.

This happens because PCR is a contrarian indicator — not a direct one. High PCR often means the market is over-hedged and ready to squeeze higher, not fall further.

How to read PCR in 3 steps

Step 1

Get the number. Check NSE option chain → scroll to the bottom → find "Total" row → divide Total Put OI by Total Call OI. Or use the Suhrid dashboard which shows it live.

Step 2

Apply the threshold. Below 0.7 = Bullish bias. 0.7–1.0 = Neutral. Above 1.0 = Bearish bias. Above 1.5 = Extreme fear (often a contrarian buy).

Step 3

Confirm with VIX and price. PCR alone is not enough. If PCR is bearish but VIX is falling and Nifty is holding support — the bears are losing. Wait for confirmation.

Real example

Scenario: PCR = 1.28, VIX = 14.2, Nifty holding 22,500 support

Reading: PCR is bearish (above 1.0), but VIX is low (calm market) and price is holding support. This is a mixed signal — do not take a directional bet. Wait for Nifty to either break 22,500 (bearish confirmed) or bounce from it (bullish confirmed).

Action: Sit out or use a range-bound strategy like an iron condor.

PCR at different times of day

9:15–10:00 AM: PCR is unreliable — option writers are still setting up positions. Ignore it.

10:00 AM–1:00 PM: Most reliable window. OI has stabilised and reflects genuine market positioning.

After 2:00 PM: PCR can shift sharply as traders close positions before expiry. Use with extra caution.

PCR on expiry day

On Thursday (Nifty expiry), PCR becomes almost meaningless after 2 PM. Massive OI unwinding distorts the ratio. Stick to price action and VIX on expiry day.

📊 See live signal on Suhrid dashboard →

Nifty, VIX, global sentiment — all in one place. Free.

Disclaimer: For educational purposes only. Not financial advice. Always use your own analysis and risk management before trading.

Frequently asked questions

What is a good PCR for Nifty?

A PCR between 0.7 and 1.0 is considered neutral and healthy. Below 0.7 suggests bullish positioning. Above 1.0 suggests bearish positioning. Above 1.5 is extreme fear and often a contrarian buy signal.

Where can I check PCR for Nifty today?

You can check Nifty PCR on the NSE website under the option chain section. The Suhrid dashboard at suhrid.in also shows the current PCR signal updated daily.

Does high PCR always mean the market will fall?

No. PCR is a contrarian indicator. A very high PCR (above 1.3–1.5) often means the market is over-hedged and a short squeeze rally is possible. Always combine PCR with VIX and price action before drawing conclusions.

What is the difference between PCR-OI and PCR-Volume?

PCR-OI uses Open Interest (outstanding contracts) and is more reliable for gauging market positioning. PCR-Volume uses the number of contracts traded in a session and is more volatile. Most traders use PCR-OI for analysis.

How often does PCR update?

NSE updates option chain data every few minutes during market hours (9:15 AM to 3:30 PM IST). PCR changes throughout the day as traders open and close positions.