Shubham Agarwal's Guide: Tracking Trends with PCR OI
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Shubham Agarwal: Master Market Trends with PCR OI to Avoid Trading Traps
M
Moneycontrol•14-03-2026, 09:13
Shubham Agarwal: Master Market Trends with PCR OI to Avoid Trading Traps
•Shubham Agarwal explains how PCR OI (Put-Call Ratio Open Interest) helps traders follow market trends and avoid common pitfalls like bottom-fishing.
•PCR OI is calculated as Total Put OI / Total Call OI, providing a live count of active positions in the market.
•Option sellers, due to their higher risk and margin, offer a more reliable signal of market direction; put sellers are bullish, call sellers are bearish.
•A rising PCR OI indicates increasing bullish conviction from informed sellers, signaling an uptrend to 'buy the dips'.
•A falling PCR OI suggests call sellers are dominant, indicating a downtrend where traders should 'sell the rallies' and resist bottom-fishing.
