Put Call Ratio (PCR): A Complete Guide for Traders

In this blog, we’ll explain what the Put Call Ratio is, how it is calculated, and how traders use it for intraday and positional strategies.

What is Put Call Ratio?

The Put Call Ratio (PCR) is a sentiment indicator that compares the trading activity of put options against call options.

• Put Options = Bearish positions (expecting a fall).
  
  

• Call Options = Bullish positions (expecting a rise).
  
  

📌 Formula:
Put Call Ratio = Put Open Interest ÷ Call Open Interest

For example, if the NSE Put Call Ratio shows more puts than calls, it reflects bearish sentiment, while more calls than puts show bullish positioning.

Why is Put Call Ratio Important?

The Put Call Ratio today is widely seen as a contrarian indicator.

• High PCR (Above 1) → Market may be oversold → Possible upward reversal.
  
  

• Low PCR (Below 1) → Market may be overbought → Possible correction.
  
  

This makes the Nifty Put Call Ratio live and Bank Nifty PCR today crucial tools for day traders and investors alike.

Types of Put Call Ratio Analysis

1. Nifty Put Call Ratio (PCR Nifty)
   This tracks the Nifty 50 Put Call Ratio today, giving a clear signal of broader market sentiment.
   
   

2. Bank Nifty Put Call Ratio
   Highly popular among intraday traders, the Bank Nifty PCR live is considered more volatile and reactive.
   
   

3. PCR NSE (Exchange-wide Put Call Ratio)
   Tracks all options on NSE to reflect overall market positioning.
   
   

4. PCR by Calculation
   Traders also perform Put Call Ratio calculation manually using the option chain data from NSE.
   
   

How to Check Put Call Ratio Live?

You can track the Put Call Ratio live chart through:

• NSE India official website
  
  

• Market portals like Moneycontrol, TradingView, Bloomberg
  
  

• Brokerage platforms offering Nifty Put Call Ratio live updates
  
  

Finowings provides timely market insights, and PCR analysis is a critical part of monitoring sentiment shifts.

Example of PCR Levels

• PCR > 1.5 → Market oversold → Possible bullish reversal.
  
  

• PCR 0.8 – 1.2 → Neutral zone → Market consolidating.
  
  

• PCR < 0.7 → Market overbought → Possible bearish reversal.
  
  

Key Takeaways for Traders

• Sentiment Indicator: PCR works best with technical analysis tools like RSI, candlestick patterns, and volume analysis.
  
  

• Nifty & Bank Nifty PCR: These are the most widely tracked ratios for Indian markets.
  
  

• PCR Today vs History: Comparing live values with past data gives stronger confirmation.

The Put Call Ratio is a simple yet effective way to understand market psychology. Whether you’re tracking the Nifty Put Call Ratio today, the Bank Nifty PCR live, or performing your own PCR calculation, this indicator can help you anticipate potential reversals and align your trading strategies.

At Finowings, combining Put Call Ratio NSE data with advanced analysis ensures smarter trading decisions in volatile markets.

FAQs on Put Call Ratio (PCR)

Q1. What is a good Put Call Ratio for Nifty?
A balanced Nifty Put Call Ratio is usually between 0.8 and 1.2. A reading above 1.5 indicates oversold conditions, while below 0.7 suggests overbought conditions.

Q2. How do I check Put Call Ratio live today?
You can check the Put Call Ratio live on NSE’s official site, brokerage apps, or portals like Moneycontrol. Many traders also monitor the Nifty PCR live chart intraday.

Q3. Is Put Call Ratio reliable for intraday trading?
Yes, but it should not be used alone. The Put Call Ratio today is useful for intraday sentiment, especially in Bank Nifty, but combining it with technical indicators gives better results.

Q4. How do you calculate Put Call Ratio manually?
The Put Call Ratio calculation is done by dividing put open interest by call open interest. For example, if puts = 10 lakh and calls = 8 lakh, PCR = 1.25.