We know that compressing air produces heat but is it possible to achieve temprature of 700degree C just by compressing air. If not what will be the maximum temprature that could be achieved?
There is no "maximum," short of creating plasma. The temperature obtained will be a function of compression ratio and insulation. Other than that it is a simple T-P ratio (use kelvin or Rankine units).
Whether you can build a 400:1 compression ratio compressor is quite a different question.
There is no set temperature that is the default maximum threshold obtainable via pneumatic compression as @Tiger Guy and @Transistor said. You could, however, think of a compressed air tank much like a bomb calorimeter, in that the air stored inside it represents the system, and the outside room/atmosphere the surroundings. The system in this case generates very little measurable heat that is not absorbed immediately by the metal tank and the surroundings.