Let’s decode this market mood meter in a way even a school student — or your samosa-loving friend — can understand.
What is Put Call Ratio?
At its core, PCR compares the number of Put options (bets on the market falling) with the number of Call options (bets on the market rising).
👉 Formula:
Put Call Ratio (PCR) = Put Open Interest ÷ Call Open Interest
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Put options = bearish (like carrying an umbrella expecting rain).
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Call options = bullish (like wearing sunglasses expecting sunshine).
So if PCR > 1 → more umbrellas, market mood is bearish.
If PCR < 1 → more sunglasses, market mood is bullish.
Why is PCR Important?
PCR is like a contrarian indicator. It not only tells you what traders think will happen but also hints when the crowd might be wrong.
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High PCR (above 1.5) → Too many are bearish. Like everyone expecting rain but the sun suddenly shines. Possible bullish reversal.
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Low PCR (below 0.7) → Too many are bullish. Like everyone wearing shades but a thunderstorm comes. Possible bearish reversal.
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PCR between 0.8 – 1.2 → Neutral zone, market chilling, eating samosas.
Types of Put Call Ratio Analysis
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Nifty Put Call Ratio (PCR Nifty)
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Tracks the PCR for Nifty 50.
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Useful for understanding the overall market mood.
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Bank Nifty Put Call Ratio
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A favorite for intraday traders.
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More volatile than your teacher’s mood on exam day.
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PCR NSE (Exchange-wide)
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Tracks the PCR for all options on NSE.
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Reflects the bigger picture sentiment.
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PCR by Calculation
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Traders can calculate it themselves.
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Example: If puts = 10 lakh and calls = 8 lakh, PCR = 1.25.
How to Check PCR Live?
Easy! You don’t need a secret NASA terminal. You can check:
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On NSE India’s website.
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Market portals like Moneycontrol, TradingView, Bloomberg.
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Brokerage apps that flash Nifty PCR live and Bank Nifty PCR today.
Real-Life Example
Let’s say the Nifty PCR today is 0.65. That means way more traders are buying calls than puts — the market is super bullish.
But remember, when everyone is bullish, markets often surprise with a correction.
On another day, if Bank Nifty PCR live shoots to 1.7, that’s panic — too many puts. Sometimes, this leads to a short-covering rally (market bounces up).
PCR Levels Cheat Sheet
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PCR > 1.5 → Market oversold → Possible bounce back.
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PCR 0.8 – 1.2 → Neutral zone → Market consolidating.
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PCR < 0.7 → Market overbought → Possible correction.
Key Takeaways for Traders
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PCR is a sentiment indicator, not a crystal ball.
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Works best when combined with tools like RSI, candlestick patterns, and volume analysis.
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Nifty PCR is a broad indicator, while Bank Nifty PCR is great for quick intraday plays.
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Comparing today’s PCR with historical levels makes analysis stronger.
Fun Analogy Recap
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PCR is the mood ring of the stock market.
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More puts = fear, more calls = greed.
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Too much of either often signals a reversal.
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Just like in real life: when everyone says samosas will sell out, that’s when sandwiches suddenly trend.
FAQs on Put Call Ratio
Q1. What is a good Put Call Ratio for Nifty?
A balanced PCR is between 0.8 and 1.2. Above 1.5 means oversold, below 0.7 means overbought.
Q2. How do I check Put Call Ratio live today?
You can check on NSE’s official site, brokerage apps, or portals like Moneycontrol.
Q3. Is PCR reliable for intraday trading?
Yes, but don’t use it alone. Combine it with technical indicators for better accuracy.
Q4. How do you calculate PCR manually?
Divide Put OI by Call OI. Example: If Puts = 12 lakh, Calls = 9 lakh → PCR = 1.33.
The Put Call Ratio (PCR) may sound like high-end trader jargon, but it’s really just a simple thermometer of market emotions. Whether you’re tracking Nifty PCR live or Bank Nifty PCR today, it helps you sense when the crowd is too greedy or too fearful.
Use PCR as part of your trading toolkit, but remember — even the best mood rings can’t predict the weather. So trade smart, mix signals, and never put all your samosas in one basket.
