Put-Call Ratio(PCR)

What the Put-Call Ratio Means

The Put-Call Ratio (PCR) divides total put open interest by total call open interest (a volume-based version uses traded volume instead). A PCR above 1 means more puts than calls are open; below 1 means more calls. It is one of the most widely watched sentiment indicators in options.

Because puts are often bought as hedges and calls as upside bets, PCR captures the balance of fear versus greed in the market at any moment.

How to Read PCR

PCR is typically read as a contrarian signal at extremes. A very high PCR (heavy put buying) can mean the market is oversold and due for a bounce; a very low PCR (heavy call buying) can mean it is overbought and due for a pullback. Mid-range PCR carries little signal — the edge is in the extremes and in the direction of change.

PCR in the Indian Market

For Nifty and BankNifty, traders watch the OI-based PCR through the day and into expiry. A sharp climb in PCR often precedes a relief rally, while a collapsing PCR can warn of complacency near a top. Read alongside max pain and OI change, PCR sharpens the positioning picture. Quintal Mind computes live PCR from the full option chain in real time.

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