Everything from Short Build up, long build up, short covering, long unwinding. Picture worth a thousand words.
#1: When PCR crosses over 1.50 and stays above 1.50 levels for couple of days we will see the Bullish Trend continuing in Nifty. It also indicates that the Put writers are too strong and the Put buyers have bought the options for hedging their long positions in Nifty.
#2: Similarly if PCR crosses below 0.80 and stays below that level for couple of days we will see the Bearish trend continuing in Nifty. It also indicates that the Call writers are too strong and the Call buyers have bought the options to hedge their short positions in Nifty.
For Original Post click here