Put-Call Ratio (PCR)

How Draconic reads it

A high PCR — above 1.2 for NIFTY as a general reference — indicates heavy put buying relative to calls, reflecting either bearish positioning or elevated hedging demand. A low PCR below 0.7 indicates call-dominant activity, reflecting bullish sentiment or complacency. PCR functions best as a contrarian indicator at extremes: extreme put buying often coincides with market bottoms where downside fear has peaked; extreme call buying often coincides with tops where complacency has peaked. PCR as a standalone signal is noisy and unreliable. PCR in context with OI concentration, gamma regime, and flow data becomes a meaningful component of the broader options landscape read.