Strota / PCR — Put-Call Ratio as Sentiment Gauge

PCR — Put-Call Ratio as Sentiment Gauge

Total put OI ÷ total call OI. Most useful at extremes — contrarian indicator.

See current PCR + trend →

PCR = total put OI ÷ total call OI. Above 1 means more puts open than calls. Below 1 means more calls.

PCR is most useful at extremes — high PCR is contrarian bullish, low PCR is contrarian bearish.

Reading PCR levels

PCR < 0.7: heavily call-positioned. Bullish extreme. Correction risk rising.

PCR 0.7-1.0: moderately bullish positioning. Normal range.

PCR 1.0-1.5: moderately bearish positioning. Normal range.

PCR > 1.5: heavily put-positioned. Bearish extreme. Short-squeeze potential.

The 5-day trend matters more

Today's PCR is one data point. The 5-day rolling PCR shows the direction of institutional positioning.

Rising PCR over 5 sessions = put accumulation = institutions building protection or bearish bets.

Falling PCR = put unwinding = sentiment shifting bullish.

What to do with this: When PCR hits 1.5+ AND has been rising for 5+ days AND FII selling streak is 7+ days, that's a high-conviction contrarian bullish setup. All three at extremes simultaneously is rare and pays well.

Common misreads

Treating PCR as direction-following. It's a contrarian indicator at extremes.
Reading single-day PCR. The trend is the signal.

← Previous

IV Smile

Max Pain Deep Dive

Key takeaways

PCR = put OI / call OI.
Below 0.7 = bullish extreme (correction risk).
Above 1.5 = bearish extreme (squeeze risk).
5-day trend matters more than today's snapshot.

PCR practical

What's a 'normal' NIFTY PCR?

0.9-1.2 covers most trading days. Outside this range, sentiment is positioning toward one side.

Is BANK NIFTY PCR comparable to NIFTY?

Roughly yes — same calculation. BANK NIFTY PCR can be more volatile because of concentrated banking-stock exposure to news.

Does Strota track PCR history?

Yes — /nifty-option-chain shows current PCR and 5-day trend.