This paper examines the mispricing opportunities present in the Indian option market by using put-call-index-parity for European style Nifty index options. The instances of mispricing of options are the most frequent and profitable for investors and provide various arbitrage opportunities in Indian market. Some of these opportunities provide excess return up to a high level. The put options are more overpriced rather than the call options. It shows that the short arbitrage strategy is more profitable relatives to long arbitrage strategy and the short arbitrage occurs more frequently relative to long arbitrage. The mispricing increases as time to expiration increases and far the money options have low liquidity in the Indian market. The frequency of mispricing is higher for options with maturity up to days (current month options) but the magnitude of mispricing is larger for options which have longer time to maturity. Further, transaction cost is also incorporated as a resul to of this the arbitrage opportunities drops more in case of PCIP as compared to PCFP.