The formula of PCR is total number of put volume divided by total number of call volumes. In the options chain we are only concerned about 2 columns. The call option open interest and the call option volume and the put option open interest and the put option volume. Check the image below: Now there are two ways of calculating the Nifty Put Call Ratio. This is the most widely used model. This is a less used option to calculate the PCR. PCR close to or above 1.
When there are huge put standing in market it means almost all traders are with puts. No one to buy new puts so its almost a market bottom.
Start buying calls now. However in extreme cases PCR can be much higher than 1. Read this free ebook to learn How I made over Rs. The types of indicators that got me all that profits. How to get my trades copied for you! Indrajit is a professional blogger and trading system developer.
Amibroker expert, Wordpress expert, SEO expert and stock market analyst. Trading since , he has started the journey of StockManiacs. He follows Indian and world stock markets closely. You will get fewer trades in this but sure shot trades. Yes sir i am observed in bank nifty i am getting PCR 1.
But in Nifty it is coming close like 1. For example if pe is having more OI we have to check nifty spot price or future price for support?? Brokers Bets — Intraday Calls For Hi sir, For stock derivatives also this same level applicable 1.
Yes Naresh, more or less the same levels act as overbought OR oversold zones in all scrips. Leave a Reply Cancel reply.More...