Stock market, July 9: NIFTY50 set for flat start amid Trump tariff jitters, copper surges 12%

The Indian equity benchmarks are set to open lower as indicated by NIFTY futures traded at Gift City in Ahmedabad. NIFTY futures at Gift City also known as Gift NIFTY futures fell 0.10% or 24 points to 25,580 amid largely subdued cues from global markets as investors waited on side lines after US President Donald Trump ruled out extending his August levy deadline.

Asian markets

Most of the Asian markets were trading on a subdued note taking cues from listless closing of US markets overnight as traders avoided taking risky bets after Trump ruled out extending his August levy deadline.

Japan's Nikkei fell 0.07%, Hong Kong's Hang Seng declined 0.88%, Taiwan Weighted index dropped 0.3% and South Korea's KOSPI rose 0.51%.

US markets

US markets ended on a flat note on Tuesday after Trump reaffirmed his intent to move forward with steep tariffs on foreign imports, signalling a renewed push on trade protectionism. Dow Jones fell 0.37%, S&P500 declined 0.07% and tech heavy Nasdaq ended 0.03% higher.

Speaking to reporters, he expressed frustration over the European Union’s taxes and penalties on US tech companies—despite ongoing trade talks—and warned that he may unilaterally announce a new tariff rate within the next two days, news agency Bloomberg reported.

Trump tariffs update

President Trump said he will announce a 50% tariff on copper on Tuesday, aiming to boost domestic production of the metal, which is vital for electric vehicles, defence systems, the power grid, and a wide range of consumer goods.

Copper futures in US surged over 12% in international markets to a record high following the unexpected announcement, which came sooner and at a higher rate than industry observers had anticipated, according to a Reuters report.

Speaking at a White House, Trump said he would formally announce the copper tariff later in the day, though he did not specify when it would take effect.

He also issued a warning that a 200% tariff could be imposed on imported pharmaceutical products.

FII/DII activity

Foreign institutional investors (FIIs) sold shares worth ₹26 crore on Tuesday in cash segment while domestic institutional investors bought shares worth ₹1,367 crore.

In the derivatives segment, FII sold index futures worth ₹269 crore and sold index options worth ₹2,708 crore.

Trade setup

NIFTY50 closed with minor gains in closing hours on Tuesday, breaking out of the three-day consolidation. The index closed above the crucial resistance level of 25,500, indicating a reversal of momentum in the index. However, global market cues remain mixed, indicating a flat opening for Indian markets on Wednesday.

On technical charts, the index formed a bullish engulfing pattern on Tuesday, indicating strong upward movement. Despite the consolidation, the index continued to trade above the crucial support trendline at the 25240 level, maintaining the bullish momentum intact.

On the options data front, the 26,000 calls witnessed heavy open interest addition on Tuesday, indicating a new resistance for the current weekly expiry. Similarly, on the downside, 25,400 holds the highest open interest, indicating a strong support at these levels for tomorrow's expiry.