What Is the PCR Ratio?
The PCR Ratio, also known as the Put Call Ratio, helps traders see what option buyers are doing.
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If more put options are being bought, traders think the market may go down.
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If more call options are being bought, it means they believe the market will rise.
So, when the PCR Ratio is high, it shows fear or a bearish mood. When it’s low, it shows confidence or a bullish feeling.
That’s why many traders monitor the PCR Ratio daily to understand short-term market behavior.
What Is the India VIX?
The India VIX, also called the Volatility Index, measures how much movement traders expect in the market soon.
It’s often called the “Fear Index” because it tells how worried investors are.
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When the India VIX is high, it means traders expect big price swings — the market feels nervous.
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When it’s low, it means the market is calm and traders feel relaxed.
So, while the PCR Ratio shows what traders are doing, the India VIX shows what they are feeling.
PCR Ratio vs. India VIX — How Are They Different?
Both the PCR Ratio and the India VIX show market sentiment, but they work in different ways. The PCR Ratio focuses on option data — it reflects how many puts or calls traders are buying. The India VIX, on the other hand, looks at expected volatility — how much the market might move up or down.
In short:
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The PCR Ratio shows trader action.
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The India VIX shows market emotion
Which One Shows Better Sentiment?
That depends on what kind of sentiment you want to understand. If you want to see what traders are doing right now, the PCR Ratio works better. It reacts quickly to changes in option activity. If you want to know how fearful or calm the market feels, the India VIX gives a clearer picture.
When both indicators move in the same direction, the signal is usually strong. For example:
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If the PCR Ratio is high and India VIX is rising, it means traders are scared — a sign of bearish sentiment.
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If the PCR Ratio is low and India VIX is falling, it means traders are confident — a sign of bullish sentiment.
