Stock market on July 7: Here are 5 things to know before opening bell

The Indian equity benchmarks are set to open on a flat note as indicated by NIFTY futures traded at Gift City in Ahmedabad. NIFTY futures traded at Gift City also known as Gift NIFTY futures rose 0.04% or 10 points to 25,536 amid subdued cues from global markets. In Friday's session, the SENSEX and NIFTY50 indices staged a strong recovery in the last hour of trade to end higher.

Asian markets

Most of the Asian markets were trading on a subdued as caution prevailed among investors ahead of July 9 tariff deadline. Japan's Nikkei fell 0.4%, Australia's S&P/ASX 200 index declined 0.17% while South Korea's KOSPI rose 0.1%.

Tariffs to take effect on August 1

The Trump administration is stepping up pressure on trading partners to quickly make new deals before a Wednesday deadline, with plans for the United States to start sending letters Monday warning countries that higher tariffs could kick in August 1.

India-US trade agreement update

With India setting its red lines on key issues in sectors such as agriculture and dairy for the proposed interim trade agreement with the US, the ball is now in Washington's court to finalise the deal, sources said.

They said if issues are settled, an interim trade pact could be announced before July 9, which marks the end of the 90-day suspension period of the Trump tariffs announced on April 2 on dozens of countries, including India.

"India has drawn its red lines... now the ball is in the US court," they said.

FII/DII activity

Foreign institutional investors sold shares worth ₹760 crore in cash segment on Friday while domestic institutional investors sold shares worth ₹,1029 crore.

In the derivatives segment, FIIs sold index futures worth ₹747 crore and sold index futures worth ₹1,381 crore.

Foreign investors put in Rs 14,590 crore in the country's equity market in June, marking the third straight month of investment, supported by improving global liquidity conditions, easing geopolitical tensions, and a rate cut by the Reserve Bank of India.

Trade setup

On technical charts, NIFTY50 index formed a hammer candlestick pattern on the daily charts, indicating some reversal from the current bearish trend in the index. 25,250 to 25,300 levels remain crucial support for the index on the downside. On the upside, the 25,650 to 25,700 levels remain a crucial resistance zone for the index.

On the options data front, the 25,500 calls hold the highest open interest, indicating strong resistance for the current weekly expiry. Similarly, on the downside, the 25,000 puts hold the highest open interest, indicating crucial support.