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}"

1. 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 |

1. Rate the macro conviction (1-5):
2. 5: Clear, strong catalyst with defined timeline (e.g., war escalation, surprise rate cut)
3. 4: Strong theme but timing uncertain
4. 3: Moderate — multiple conflicting signals
5. 2: Weak — mostly noise
6. 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}")

1. Check institutional flows (invoke fii-dii-flow-tracker skill):
2. FII net buy/sell trend (last 5-10 days)
3. DII positioning
4. Sector-wise FII allocation shifts

1. Narrow to ONE instrument using this priority:
2. Index (Nifty/BankNifty): For macro/geopolitical/broad market themes
3. Sector ETF or index: For sector rotation themes
4. Single stock: For earnings/company-specific catalysts (must be in F&O list)

1. 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"
)

1. 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

1. Identify key levels:
2. Support levels: Recent swing lows, round numbers, SMA/EMA zones
3. Resistance levels: Recent swing highs, previous breakdown points
4. Trend: Higher highs/lows (bullish) or lower highs/lows (bearish)
5. Momentum: RSI, MACD crossover direction, SuperTrend signal

1. 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

1. 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

1. 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) |

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

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

1. 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

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

Output: Trade Card

TRADE IDEA