Ways2CapitalReview : 10 Stocks Are Witnessing Big Change In Put-Call Ratio As March Series Begins

What is Put/Call Ratio?
Put/Call ratio is a popular derivative indicator, specifically designed to help traders gauge the overall mood of the market. The ratio is calculated either on the basis of options trading volumes or on the basis of the open interest for a period. If the ratio is more than 1, it means that more puts have traded during the day and if it is less than 1, it means more calls have been traded.

Let’s see how PCR analysis can be interpreted taking option sellers into consideration, who are the major players in the market as compared to the retail public, who are usually on the buying side of the trade.
Put / Call Ratio

If put call ratio increases as minor dips getting bought in during an up trending market
Bullish Indication. It means the put writers are aggressively writing at dips expecting the uptrend to continue

If put call ratio decreases while markets are testing the resistance levels
Bearish Indication. It means call writers expecting limited upside in the market or a correct and build a fresh position.

If put call ratio decreases during down trending market
Bearish indication. It means option writers are aggressively selling the call option strikes.

Following is the list of stocks that are witnessing maximum change in their put-call ratio ahead of March F&O expiry.

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