OI and PCR Interpretation Guide for Indian Markets

OI and PCR in context

Open interest indicates where positioning is building, while PCR reflects call-vs-put activity balance.

Neither signal should be traded in isolation. The best reads come from combining OI build-up, OI shifts, PCR trend, and price reaction.

Practical interpretation workflow

• Start with regime: trend, range, or high-volatility session.
• Locate fresh OI additions near key strikes and map likely defense zones.
• Track PCR movement over time instead of single print values.
• Validate with price acceptance/rejection near OI clusters.
• Use invalidation levels if price breaks through defended strikes.

Common mistakes

Treating high PCR as an automatic buy signal can be costly during strong downtrends.

Ignoring OI unwinding and relying only on headline PCR often leads to late entries.