Stock market on June 27: Here are 5 things to know before opening bell

The Indian equity benchmarks are set to open higher as indicated by NIFTY futures traded at Gift City in Ahmedabad. Gift NIFTY futures rose 0.47% or 122 points to 25,731 amid positive cues from Asian markets after US President Donald Trump hinted that a major trade agreement with India could be in the works.

Asian markets

Japan's Nikkei rose 1.55%, Hong Kong's Hang Seng advanced 0.55%, China's Shanghai Composite rose 0.1% and South Korea's KOSPI fell 0.7%.

US markets

Overnight, US stock market edged closer to record highs on Thursday.

The S&P 500 climbed 0.8% and is sitting just 0.05% below its all-time closing high, which was set in February. It briefly topped the mark during the afternoon in the latest milestone for the index at the heart of many 401(k) accounts, which had dropped roughly 20% below its record during the spring on worries about President Donald Trump’s tariffs.

US-China trade deal

The US and China have finalised a trade understanding reached last month in Geneva, which includes China's commitment to deliver rare earths used in various industries.

The White House plans to reach agreements with 10 major trading partners including India with President Donald Trump prepared to finalize deals in the coming two weeks, ahead of a July 9 deadline to reinstate higher tariffs.

FII/DII activity

Foreign institutional investors (FIIs) bought shares worth ₹12,594 crore on Thursday in cash segment while domestic institutional investors sold stocks worth ₹195 crore.

FIIs bought index futures worth ₹4,807 crore and bought index options worth ₹32,273 crore.

Trade setup

On technical charts, the index closing above the previous swing high trendline indicates strong bullish momentum. Experts believe the index outlook remains bullish, with the next resistance level of 26,000 for the index.

On the options data front, 26,000 calls for the July 3rd expiry hold the highest open interest, indicating resistance at these levels. On the downside, 25,200 puts hold the highest open interest, indicating support for the current weekly expiry.