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What is put call ratio, how is it calculated, how to read market sentiment — complete Hindi guide.
Published by The Retail Trader · AUG 13, 2026 · Features
What is put call ratio, how is it calculated, how to read market sentiment — complete Hindi guide.
PCR is a sentiment indicator that tells what is the ratio of puts vs calls in the options market. It tells the mood of the market – bullish or bearish.
PCR = Total Put OI / Total Call OI
Keep these five points in mind:
• > 1.5 — Market Sentiment: Very Bullish, What It Means: A very large number of puts are being sold → support is strong
• 1.0-1.5 — Market Sentiment: Bullish, What It Means: Puts slightly higher → market expect will go up
• 0.8-1.0 — Market Sentiment: Neutral, What It Means: Balanced → No clear direction
• 0.5-0.8 — Market Sentiment: Bearish, What It Means: More calls → resistance is strong
• < 0.5 — Market Sentiment: Very Bearish, What It Means: Extreme call buying → market girega
Contrarian Signal:
• PCR > 2.0 → Market bottom near (buy signal)
• PCR < 0.4 → Market top near (sell signal)
Strategy 1: Trend Confirmation:
• Rising PCR + Rising Market = Strong uptrend
• Falling PCR + Falling Market = Strong downtrend
Strategy 2: Reversal Signal:
• Extreme PCR (>2.0 or <0.4) = Contrarian opportunity
Strategy 3: PCR + India VIX:
• High PCR + High VIX = Fear peak = Buy signal
• Low PCR + Low VIX = Complacency = Sell signal
Keep these points in mind:
• 📌 PCR QUICK REFERENCE
• LEVELS:
• 📊 > 1.5 = Very Bullish
• 📊 1.0-1.5 = Bullish
• 📊 0.8-1.0 = Neutral
• 📊 0.5-0.8 = Bearish
• 📊 < 0.5 = Very Bearish
• CONTRARIAN:
• 📊 > 2.0 = Bottom signal (BUY)
• 📊 < 0.4 = Top signal (SELL)
• STRATEGIES:
• ✅ Trend confirmation
• ✅ Reversal at extremes
• ✅ PCR + VIX combo
Keep these four points in mind:
• How to Read an Option Chain?
• What Is Implied Volatility?
• What Is India VIX?
• What Are Option Greeks?
The Retail Trader — educational market analysis. Not investment advice.
This article is for educational purposes only. It is not a buy or sell recommendation, a claim of guaranteed returns, or advisory guidance. Exchanges, SEBI and RBI change rules, rates and procedures from time to time, so verify every figure with your broker or an official source.