What is PCR (Put Call Ratio) in Nifty and how is it read?
By CA Vaibhav Sandipan Mote, SEBI Registered Research Analyst (INH000019895). Updated 12 November 2026.
Short answer: PCR means Put Call Ratio. It is the total open interest in put options divided by the total open interest in call options for the same index and expiry. A PCR above 1 means more put contracts are open than call contracts, and a PCR below 1 means more call contracts are open. It describes how the options market is positioned. It does not tell you where the market will go.
How PCR is calculated
The common version uses open interest (OI), which is the number of option contracts that are still open.
PCR = total put open interest ÷ total call open interest.
Example: if Nifty puts have a total open interest of 12,00,000 contracts and Nifty calls have 10,00,000 contracts, the PCR is 12,00,000 ÷ 10,00,000 = 1.2.
Some people calculate PCR from traded volume instead of open interest. The two numbers can differ, so always check which one a website or report is showing.
How traders usually read it
- PCR above 1: more puts are open than calls. Many traders read this as put sellers being active, which they treat as support for the market.
- PCR below 1: more calls are open than puts. Many traders read this as call sellers being active, which they treat as pressure on the market.
- Very high or very low PCR: some traders read an extreme reading the opposite way, as a sign that positioning is one-sided and may reverse.
These are conventions, not rules. Two traders can look at the same PCR and reach opposite views.
What PCR cannot tell you
- It does not show who bought and who sold. Every open contract has one buyer and one seller.
- It changes during the day, and it behaves differently close to expiry.
- It is one data point. Price, volume, volatility and news matter too.
- It has no fixed "good" or "bad" level that works every time.
Where to find Nifty PCR
The NSE website publishes the option chain for Nifty and Bank Nifty with open interest for every strike. PCR can be worked out from the total put OI and total call OI shown there.
Common questions
What does a PCR of 1 mean?
A PCR of 1 means the open interest in puts and calls is equal. Neither side has more open contracts.
Is a high PCR bullish or bearish?
There is no single answer. Many traders treat a PCR above 1 as supportive because put sellers are active, while others treat a very high PCR as a warning of one-sided positioning. PCR alone cannot predict direction.
Important: This article is for education only. It is not investment advice and not a recommendation to buy or sell any security. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, enlistment with a SEBI recognised supervisory body and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.