Weekly fno trade planner

Weekly F&O Trade Planner

Overview

A complete weekly trading workflow for Indian F&O markets — from macro thesis to position management. This skill identifies high-conviction directional trades by combining news analysis, sector screening, technical confirmation, and institutional flow data, then manages the position with structured stop-loss and profit-booking rules.

Designed for retail traders with limited capital who prefer option buying over selling. Supports both Groww MCP and Zerodha Kite MCP for live execution.

---

Phase 1: News & Macro Scan

Goal

Identify the dominant narrative driving markets this week.

Steps

1. Fetch breaking news and macro events:

WebSearch: "Indian stock market news this week {current_date}"
WebSearch: "global markets impact India {current_week}"
WebSearch: "RBI SEBI announcement {current_month} {current_year}"
WebSearch: "geopolitical risk India market {current_date}"

2. Categorize the macro environment:

Category	Examples	Typical F&O Play
Geopolitical crisis	War, sanctions, oil shock	Index PUTs (Nifty/BankNifty)
Policy event	RBI rate decision, budget, SEBI circular	Straddle/strangle before event
Earnings season	IT/Banking results week	Stock options directional
Global risk-off	US recession fear, China slowdown, Fed hawkish	Index PUTs, IT stock CALLs (INR weak)
Domestic momentum	DII buying, reform news, GDP beat	Index CALLs, banking CALLs
Sector rotation	Defence order, pharma approval, EV policy	Sector-specific stock options
Low conviction	No clear driver, range-bound	Avoid or play iron condor

3. Rate the macro conviction (1-5):
   • 5: Clear, strong catalyst with defined timeline (e.g., war escalation, surprise rate cut)
   • 4: Strong theme but timing uncertain
   • 3: Moderate — multiple conflicting signals
   • 2: Weak — mostly noise
   • 1: No conviction — skip the week or go very small

Rule: Only proceed to Phase 2 if conviction >= 3.

---

Phase 2: Sector & Instrument Identification

Goal

Find the ONE instrument most likely to move meaningfully this week.

Steps

1. Screen market movers and sectors:

Use whichever broker MCP is connected:

# Groww MCP
fetch_market_movers_and_trending_stocks_funds(
    discovery_filter_types=["TOP_GAINERS", "TOP_LOSERS", "VOLUME_SHOCKERS",
                           "YEARLY_HIGH", "YEARLY_LOW", "STOCKS_IN_NEWS"]
)
fetch_curated_fno(fno_filter_types=["GAINERS", "LOSERS", "TOP_TRADED"])

# Zerodha Kite MCP — use web search for movers, then:
# search_instruments(query="{sector_leader}")

2. Check institutional flows (invoke fii-dii-flow-tracker skill):

   • FII net buy/sell trend (last 5-10 days)
   • DII positioning
   • Sector-wise FII allocation shifts

3. Narrow to ONE instrument using this priority:

   • Index (Nifty/BankNifty): For macro/geopolitical/broad market themes
   • Sector ETF or index: For sector rotation themes
   • Single stock: For earnings/company-specific catalysts (must be in F&O list)

4. Validate F&O availability:

# Groww MCP
fno_mcx_contracts_search_tool(search_term="{instrument_name}")

# Zerodha Kite MCP
search_instruments(query="{instrument_name}", segment="NFO-OPT")

Selection Criteria

The ideal instrument has:

• Direct exposure to the identified macro theme
• High F&O liquidity (tight bid-ask spread)
• Clear technical setup (trending, not choppy)
• Manageable lot size for user's capital

---

Phase 3: Direction & Technical Confirmation

Goal

Determine the probable direction (bullish/bearish) with technical evidence.

Steps

1. Fetch price data (daily and hourly):

# Groww MCP
fetch_historical_candle_data(
    trading_symbol="{symbol}",
    start_time="{60_days_ago} 09:15:00",
    end_time="{today} 15:30:00",
    interval_in_minutes="1440"
)

# Zerodha Kite MCP
get_historical_data(
    instrument_token="{token}",
    from_date="{60_days_ago}",
    to_date="{today}",
    interval="day"
)

2. Run technical indicators:

# Groww MCP
get_historical_technical_indicators(
    trading_symbol="{symbol}",
    start_time="{30_days_ago} 09:15:00",
    end_time="{today} 15:30:00",
    interval_in_minutes="1440",
    indicators=["sma", "ema", "rsi", "macd", "supertrend", "bollinger", "atr", "vwap"]
)

# Zerodha Kite MCP — fetch raw candles and compute indicators manually or via yfinance

3. Identify key levels:

   • Support levels: Recent swing lows, round numbers, SMA/EMA zones
   • Resistance levels: Recent swing highs, previous breakdown points
   • Trend: Higher highs/lows (bullish) or lower highs/lows (bearish)
   • Momentum: RSI, MACD crossover direction, SuperTrend signal

4. Check Open Interest for institutional positioning:

# Groww MCP
get_open_interest_analysis(symbol="{symbol}", view="all")

# Zerodha Kite MCP — use web search for OI data from NSE

• Heavy PUT writing at a strike = institutional support floor
• Heavy CALL writing at a strike = institutional resistance ceiling
• PCR > 1.2 = market leaning bullish (hedged)
• PCR < 0.8 = market leaning bearish

5. Direction verdict:

Signal	Bullish	Bearish
Trend	Higher lows	Lower highs
RSI	40-60 rising	40-60 falling
MACD	Bullish crossover	Bearish crossover
SuperTrend	Green/Buy	Red/Sell
FII flows	Net buying	Net selling
OI structure	Heavy PUT writing below	Heavy CALL writing above

Rule: Need 4+ signals aligned for a directional trade. If mixed, skip or play non-directional.

---

Phase 4: Strategy & Entry Plan

Goal

Select the optimal option strategy and define precise entry levels.

Steps

1. Check IV environment:

# Groww MCP
get_greeks_for_fno_contract(
    search_queries=["{atm_option}"],
    expiry="{expiry_date}"
)
get_atm_straddle_chart(symbol="{symbol}")

# Zerodha Kite MCP — compute IV from option price using Black-Scholes

2. Select strategy based on conviction + IV:

Conviction	IV Level	Direction	Strategy
High (4-5)	Low-Normal	Bullish	Buy ATM/slightly OTM CALL
High (4-5)	Low-Normal	Bearish	Buy ATM/slightly OTM PUT
High (4-5)	High	Bullish	Bull call spread (cap IV risk)
High (4-5)	High	Bearish	Bear put spread (cap IV risk)
Moderate (3)	Low	Either	Buy OTM option (cheap lottery)
Moderate (3)	High	Either	Sell far OTM opposite side (collect premium)
Any	Very High	Pre-event	Straddle/strangle (if event binary)

3. Expiry selection:

   • Current week expiry: Only if entering Mon-Tue with high conviction
   • Next week expiry: Default choice — gives 7-12 days
   • Monthly expiry: For lower conviction or swing trades
   • Rule: Never buy options with < 3 days to expiry unless very high conviction

4. Strike selection:

   • ATM or 1 strike OTM: High conviction, want delta exposure
   • 2-3 strikes OTM: Moderate conviction, cheaper but needs bigger move
   • Deep OTM: Avoid (low probability, theta destroys)

5. Position sizing:

# Groww MCP
calculate_fno_margin(
    trading_symbol="{option_symbol}",
    num_lots=1,
    transaction_type="BUY",
    product="NRML"
)
get_available_margin_details()

# Zerodha Kite MCP
get_margins()

• Max risk per trade: 30-40% of capital for single directional bet
• Preferred: Split into 2-3 lots for scaling in/out
• Never: Risk more than 50% of capital on a single trade

6. Define entry plan:
   • Entry trigger: Specific price level or technical confirmation
   • Entry price range: Acceptable premium range
   • Lot allocation: How many lots at entry vs. add-on

Output: Trade Card

TRADE IDEA — Week of {date}
━━━━━━━━━━━━━━━━━━━━━━━━━━━
Thesis:     {1-line macro reason}
Instrument: {symbol}
Direction:  {BULLISH/BEARISH}
Conviction: {3/4/5 out of 5}

Strategy:   Buy {strike} {CE/PE} {expiry}
Entry:      ₹{premium} (when {underlying} at {level})
Lots:       {n} lots ({quantity} qty)
Capital:    ₹{amount} ({%} of total)

Stop-Loss:  ₹{sl_premium} ({underlying} at ~{level}) = -₹{loss}
Target 1:   ₹{t1_premium} ({underlying} at ~{level}) = +₹{profit1}
Target 2:   ₹{t2_premium} ({underlying} at ~{level}) = +₹{profit2}

Risk:Reward = 1:{ratio}
Max Loss:   ₹{max_loss} ({%} of capital)
━━━━━━━━━━━━━━━━━━━━━━━━━━━

---

Phase 4.5: Gap Probability & Immediate Entry Decision

Goal

When analysis is run DURING MARKET HOURS or AFTER MARKET CLOSE (post 3:30 PM), assess whether the next trading day is likely to see a significant gap-up or gap-down. If high probability, recommend IMMEDIATE entry before close — do NOT defer to next morning.

THIS IS THE MOST CRITICAL PHASE FOR MULTIPLIED PROFITS. Buying OTM options before a gap is 2-5x cheaper than buying after the gap opens. Missing this window is the single biggest profit killer for retail F&O traders.

When to Trigger This Phase

• Always when running the skill after 2:00 PM on a trading day
• Always when running the skill after market close (post 3:30 PM)
• Always when conviction is >= 4 and direction is clear
• Always when an active geopolitical/macro crisis is ongoing

Steps

1. Check GIFT Nifty / SGX Nifty (after hours):

WebSearch: "GIFT Nifty live today {current_date}"
WebSearch: "SGX Nifty futures {current_date} evening"

• GIFT Nifty trading > 100 pts below close = high gap-down probability
• GIFT Nifty trading > 100 pts above close = high gap-up probability

2. Check overnight global cues:

WebSearch: "US futures S&P Nasdaq live {current_date}"
WebSearch: "Asian markets Japan China {current_date} evening"
WebSearch: "crude oil price Brent live tonight {current_date}"

• US futures down > 1% = gap-down signal
• Brent crude spike > 3% overnight = strong gap-down for India
• Asian markets deep red = confirms gap-down

3. Check overnight news catalysts:

WebSearch: "{active_crisis} latest news tonight {current_date}"
WebSearch: "breaking news global markets after hours {current_date}"

• New escalation in active crisis = gap accelerator
• De-escalation / ceasefire = reverse gap

4. Calculate Gap Probability Score:

Factor	Bearish Gap	Bullish Gap
GIFT Nifty > 100 pts below close	+30%	—
GIFT Nifty > 200 pts below close	+50%	—
US futures down > 1%	+15%	—
Brent crude up > 3% overnight	+20%	—
Active geopolitical crisis escalating	+20%	—
FII selling > ₹3,000 cr today	+10%	—
GIFT Nifty > 100 pts above close	—	+30%
GIFT Nifty > 200 pts above close	—	+50%
US futures up > 1%	—	+15%
Ceasefire / de-escalation news	—	+25%
FII buying > ₹2,000 cr today	—	+10%

Score > 60% = HIGH probability gap. RECOMMEND IMMEDIATE ENTRY.

5. Immediate Entry vs Wait Decision:

Gap Probability	Time	Action
> 60%	Before 3:15 PM	BUY NOW. Do not wait for tomorrow.
> 60%	After 3:30 PM	Alert user: Buy at 9:15 AM tomorrow. Pre-set limit order.
40-60%	Any	Buy half position now, half at open
< 40%	Any	Wait for confirmation at open

6. Pre-Gap Strike Selection (DIFFERENT from regular entry): When buying BEFORE a gap, select strikes that are currently 2-4 strikes OTM:

   • These are cheap (₹50-150 range) = maximum leverage
   • After the gap, they become ATM or slightly OTM = premium explodes
   • Buy MORE lots of cheaper OTM options for max profit on the gap
   • This is the "lottery ticket" entry — high R:R, limited downside

   Example (Bearish gap expected):

   • Nifty at 23,778 → Buy 23,000 PE at ₹109 (778 pts OTM)
   • Next day gap to 23,200 → 23,000 PE jumps to ₹250+ (130% overnight gain)
   • 6 lots × 65 × ₹141 profit = ₹55,000 on ₹42,500 invested

7. Output: Immediate Entry Alert:

🚨 GAP ALERT — {DIRECTION} GAP EXPECTED TOMORROW
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
Gap Probability: {score}%
GIFT Nifty:      {level} ({change} from close)
Key Catalyst:    {reason}

⚡ IMMEDIATE ENTRY RECOMMENDED — BUY BEFORE CLOSE
Strategy:   Buy {strike} {CE/PE} {expiry} (currently {X} pts OTM)
Premium:    ₹{cheap_price} per unit
Lots:       {max_lots} lots in ₹{budget}
Cost:       ₹{total_cost}

Expected tomorrow open: ₹{estimated_premium} (+{%} overnight)
Expected profit:        ₹{overnight_profit}

vs. buying AFTER gap:   Premium will be ₹{expensive_price}
                        You'd get {fewer_lots} lots for same ₹{budget}
                        Profit potential: {reduced}% lower

⏰ WINDOW: Buy before 3:15 PM today
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━

Critical Rules for Pre-Gap Entry

1. Only with conviction >= 4 — Don't gamble on uncertain gaps
2. Max 40% of capital — Even with high conviction, respect position limits
3. Always use monthly expiry for pre-gap entries — gives time if gap is delayed
4. Set SL immediately — Pre-gap entries can go wrong (gap doesn't materialize)
5. If gap doesn't happen next day — Hold if thesis is intact, exit if thesis breaks
6. Don't chase if you miss the window — Post-gap premiums are 2-3x, reduce lots

---

Phase 5: Execution

Goal

Place the trade with proper order types.

Steps

1. Verify live price before entry:

# Groww MCP
get_ltp(search_queries=["{option_symbol}"], segment="FNO", query_type="fno")
get_quotes_and_depth(search_query="{option_symbol}", segment="FNO", entity_type="fno")

# Zerodha Kite MCP
get_ltp(instruments=["NFO:{option_symbol}"])
get_quotes(instruments=["NFO:{option_symbol}"])

2. Place the order (always ask user for confirmation):

# Groww MCP
place_fno_order(
    trading_symbol="{option_symbol}",
    num_lots={n},
    transaction_type="BUY",
    order_type="LIMIT",
    price={limit_price},
    product="NRML"
)

# Zerodha Kite MCP
place_order(
    exchange="NFO",
    tradingsymbol="{option_symbol}",
    transaction_type="BUY",
    quantity={quantity},
    order_type="LIMIT",
    price={limit_price},
    product="NRML"
)

3. Set GTT stop-loss immediately after fill:

# Groww MCP
place_fno_order(
    trading_symbol="{option_symbol}",
    num_lots={n},
    transaction_type="SELL",
    order_type="LIMIT",
    price={sl_price},
    trigger_price={sl_trigger},
    smart_order_category="GTT",
    trigger_direction="DOWN",
    product="NRML"
)

# Zerodha Kite MCP
place_gtt_order(
    trigger_type="single",
    tradingsymbol="{option_symbol}",
    exchange="NFO",
    trigger_values=[{sl_trigger}],
    last_price={current_ltp},
    orders=[{
        "transaction_type": "SELL",
        "quantity": {quantity},
        "price": {sl_price},
        "order_type": "LIMIT",
        "product": "NRML"
    }]
)

4. Set GTT profit target (same pattern as above with trigger_direction="UP")

Important GTT notes:

• GTT triggers on the OPTION's LTP, not the underlying price
• Always set trigger_price slightly before the limit price (e.g., trigger at ₹95, sell at ₹90 for SL)
• On Groww: GTT may show "verification failed" — this is a known display bug, the order is active
• After exiting a position, ALWAYS cancel orphaned GTTs

---

Phase 6: Position Management (Ongoing)

Goal

Manage the position daily with structured rules for SL tightening, partial exits, and full exit.

Daily Monitoring Checklist

1. Check position P&L:

# Groww MCP
get_my_trading_positions_today()
get_specific_stock_position(trading_symbol="{option}", segment="FNO")

# Zerodha Kite MCP
get_positions()

2. Check underlying price action:

# Use either broker MCP for live price + intraday chart
get_ltp(search_queries=["{underlying}"])
fetch_historical_candle_data(
    trading_symbol="{underlying}",
    start_time="{today} 09:15:00",
    end_time="{today} 15:30:00",
    interval_in_minutes="5"
)

3. Check news for thesis changes:

WebSearch: "{macro_theme} latest news {current_date}"

4. Check institutional flows (FII/DII daily data via fii-dii-flow-tracker skill)

Stop-Loss Tightening Rules

Premium Move	New SL Level	Logic
Entry	-30% of premium	Initial risk limit
+30% profit	Breakeven (entry price)	"Free trade" — can't lose
+50% profit	Entry + 20%	Lock 20% guaranteed profit
+100% profit	Entry + 50%	Lock 50%, let rest run
+150%+ profit	Trail by 30% from peak	Ride the momentum

To tighten a GTT SL:

# Groww MCP
modify_order_with_confirmation(
    groww_order_id="{gtt_order_id}",
    quantity={qty},
    segment="FNO",
    order_type="LIMIT",
    price={new_sl_price},
    trigger_price={new_trigger},
    trigger_direction="DOWN",
    order_category="GTT"
)

# Zerodha Kite MCP
modify_gtt_order(
    trigger_id={gtt_id},
    trigger_type="single",
    tradingsymbol="{option_symbol}",
    exchange="NFO",
    trigger_values=[{new_trigger}],
    last_price={current_ltp},
    orders=[{
        "transaction_type": "SELL",
        "quantity": {qty},
        "price": {new_sl_price},
        "order_type": "LIMIT",
        "product": "NRML"
    }]
)

Partial Profit Booking Rules

Condition	Action	Remaining
Target 1 hit (+50-80%)	Exit 40-50% of position	50-60% as runner
Target 2 hit (+100-150%)	Exit another 30%	20-30% as runner
Momentum continues	Trail SL on remaining	Let it ride
Thesis weakens	Exit all remaining	Protect profits

Full Exit Triggers

Exit the ENTIRE position when:

• SL hit: No questions, no hoping — exit immediately
• Thesis invalidated: Key news changes the setup (e.g., ceasefire in a war trade)
• Time decay risk: < 2 days to expiry and position is OTM
• IV crush: After a binary event, IV drops killing premium even if direction is right
• Weekend risk: For weekly expiry options, exit Friday unless very high conviction
• Overexposure: If unrealized P&L exceeds 50% of total capital, take some off

Exit Execution

# Market exit for urgency (Groww)
place_fno_order(
    trading_symbol="{option_symbol}",
    num_lots={remaining_lots},
    transaction_type="SELL",
    order_type="MARKET",
    product="NRML"
)

# Zerodha Kite
place_order(
    exchange="NFO",
    tradingsymbol="{option_symbol}",
    transaction_type="SELL",
    quantity={remaining_qty},
    order_type="MARKET",
    product="NRML"
)

# ALWAYS cancel orphaned GTTs after exit
# Groww: cancel_order_with_confirmation(groww_order_id="{gtt_id}", segment="FNO", order_category="GTT")
# Zerodha: delete_gtt_order(trigger_id={gtt_id})

---

Risk Management Rules (Non-Negotiable)

1. Max capital at risk: 40% of total capital per trade
2. Always set SL: Never hold a position without a stop-loss GTT
3. No averaging down: If SL is hit, accept the loss. Don't add to losers.
4. Weekend rule: Exit weekly expiry options before Friday close unless thesis is very strong
5. Theta awareness: Options lose ~30-50% of remaining time value over a weekend
6. IV awareness: After a big event, IV crushes. Factor this into hold decisions.
7. No revenge trading: If a trade is stopped out, wait for the next clean setup
8. Position limit: Max 2 open F&O positions at any time
9. Cancel orphaned GTTs: After every exit, clean up ALL related GTT orders
10. Journal the trade: Record entry reason, exit reason, P&L, and lessons learned

---

Weekly Schedule

Day	Activity
Sunday evening	Phase 1-4: Full analysis, generate Trade Card
Monday 9:00 AM	Phase 4.5: Check GIFT Nifty, assess gap probability
Monday 9:00-9:15	Phase 5: Execute if setup confirms (pre-open or at open)
Mon-Thu (market hours)	Phase 6: Daily monitoring, SL tightening, partial exits
Mon-Thu (post 3 PM)	Phase 4.5: ALWAYS check for next-day gap opportunity
Mon-Thu (after close)	Phase 4.5: Check GIFT Nifty + overnight cues for gap alert
Friday	Decision: Exit before weekend or hold (apply weekend rule)
Weekend	Review, journal, prepare next week's analysis

IMPORTANT: Evening Workflow (The Edge)

Every trading day after 2:30 PM or after market close, if an active position thesis exists or macro conviction >= 3, the skill MUST run Phase 4.5 to check for overnight gap opportunities.

The #1 profit multiplier in F&O is buying BEFORE the gap, not AFTER.

If the user invokes this skill in the evening / after hours:

1. Skip Phases 1-3 if thesis is already established
2. Go DIRECTLY to Phase 4.5 (Gap Probability)
3. If gap score > 60%, issue Immediate Entry Alert
4. NEVER say "wait for tomorrow" when gap probability is high and market is still open
5. If market is closed, alert user to set pre-market limit order or buy at 9:15 sharp

---

Tools Used

Use whichever broker MCP is connected (Groww or Zerodha Kite):

Action	Groww MCP	Zerodha Kite MCP	Fallback
Live price	get_ltp	get_ltp	yfinance
Market depth	get_quotes_and_depth	get_quotes	—
Historical data	fetch_historical_candle_data	get_historical_data	yfinance
Technical indicators	get_historical_technical_indicators	— (compute from candles)	yfinance + pandas
Open interest	get_open_interest_analysis	—	Web search (NSE)
Greeks/IV	get_greeks_for_fno_contract	—	Black-Scholes script
ATM straddle	get_atm_straddle_chart	—	Manual calculation
Margin check	calculate_fno_margin	get_margins	—
F&O search	fno_mcx_contracts_search_tool	search_instruments	—
Place order	place_fno_order	place_order	—
GTT orders	place_fno_order (GTT)	place_gtt_order	—
Modify GTT	modify_order_with_confirmation	modify_gtt_order	—
Cancel GTT	cancel_order_with_confirmation	delete_gtt_order	—
Positions	get_my_trading_positions_today	get_positions	—
Portfolio	get_equity_portfolio_holdings	get_holdings	—
Market movers	fetch_market_movers_and_trending_stocks_funds	—	Web search
F&O movers	fetch_curated_fno	—	Web search
Trading calendar	resolve_market_time_and_calendar	—	Web search
Screener	fetch_technical_screener	—	Web search
News	WebSearch	WebSearch	WebSearch
FII/DII flows	fii-dii-flow-tracker skill	fii-dii-flow-tracker skill	Web search
Calculator	calculator	—	Python

---

Disclaimer

This skill provides analysis and trade suggestions based on publicly available data and technical/fundamental indicators. It is NOT financial advice. All F&O trading involves significant risk of loss. Users must make their own investment decisions and are responsible for their own trades. Past patterns do not guarantee future results.