As a trader, what would you give to be able to know what the rest of the market participants are doing at any given point in time. The PC Ratio measures how many put options are bought versus call options. This data is easily available in Nifty options chain.
In the above chart we have automated the same for you so you can get live view of what market is thinking. Here is how I use this indicator. With all market participants bearish and now sitting on short positions, a very interesting thing takes place — there is nobody left to sell.
With nobody left to sell, there is no selling pressure on the market, and they start to drift higher. This drifting eventually hits the first set of stop loss orders. Now all these market participants will be using some sort of stop loss. Some will use a very tight SL, others may use medium and remaining using wide stop loss. The group of tight stops get hit first, which generates a buying pressure taking market higher. Then the medium and finally the wide SL until all the stops are taken out.
By the time all stops are taken out the market participants turn bullish and want to remain on the long side of the market. This is very useful indicator for day-trading. It means, the Put writers are aggressively writing at dips. Look for retracement percentage of last rise during correction while keeping an eye on this chart. This implies that bulls are fearful of bears. It means, either call writers are aggressively writing at every rise or Put writers are closing there positions cutting losses.
Look for retracement percentage of last fall during correction while keeping an eye on this chart. Good to see this chart — allows the trader to analyze and see correlation between various indicators and Nifty Spot. The daily PCR chart on your portal has this data in the form of a chart since July 17th.
Would be really useful to study this trend for the past few months. I took ceat fo 1 lot and as it dip took novput 27rs to hedge pl guide some stretegy Wat to do. For last one week or so I am not able to see any of the charts on this site. I have tried all browsers but all in vain. Earlier I was able to see your site in Firefox but now the charts have gone invisible rest of the page is visible. I dont know if anybody is facing the same problem.
If the problem persists, please send screenshot of the issue to care niftytrader. St Bk of India Sun Pharma. The team at NiftyTrader. Please Enter Confirm Password Password does not match. Back To Email ID.
Can't read the image? How to combine PCR in your trade plan? Here is my Golden Rule: For intraday trading — live PCR trend can be extremely reliable indicator. Why such a strange pattern in PCR Trend? Sudden drop in morning? Can you tell me how is PCR Ratio calculated? Please send email to care niftytrader. This is chart is not working properly, not inputs. Problem has been sorted out. Please try again after few minutes. Live Traded Volume of Options. Banks and Other Financial Institutions.More...