Domestic markets are expected to open on a flat note on Tuesday after a strong rebound yesterday. Analysts expect the consolidation phase to continue and caution investors to stay alert on the global and domestic macro events. Profit-taking will check market progress, they added.

Gift Nifty at 25010 against Nifty futures value of 24,996 signals a flattish beginning for the day. Asia-Pacific stocks are positive in early deals on Tuesday. 

Analysts do not expect a rate cut from the US Fed in June as tariff impacts remain unclear. The Fed’s upcoming meeting on Wednesday will focus on economic projections and inflation risks. 

Vikram Kasat, Head - Advisory, PL Capital, said: ”Markets are showing resilience in the face of geopolitical heat — thanks to easing inflation, fiscal discipline, and steady institutional support. With the Fed and BoJ meetings ahead, plus the trade deal buzz, expect volatility — but also pockets of opportunity.”

Meanwhile, merchandise trade deficit dipped to $21.9 billion. 

According to Emkay Global Research, the merchandise trade deficit dipped to $21.9 billion in May (vs $26.4 billion in April) on falling imports, while exports were stable on a sequential basis. “The fall in imports was led by significant declines in oil and gold imports, even as core imports rose sequentially. The trend for core exports and imports improved on the back of Trump’s tariff pause. Services surplus fell to $15.3 billion, with the April figure revised down significantly. FY26E CAD/GDP is at 0.8% with some upside risk/ potential, as exports growth may slow down in a tariff-/ trade-war scenario, even with import growth likely lagging, given subdued domestic demand. Additionally, a sustained West Asia conflict may push Brent prices higher; however, with the FY26TD average at $66/bl, there remains some leeway,” the not said.

Nandish Shah - Deputy Vice-President, HDFC Securities, said: From a technical perspective, by closing above 24,937, the Nifty has successfully retraced more than 61.8% of the entire 750-points fall observed from 25,222 to 24,473. Furthermore, the Nifty has filled the entire downward gap that was formed on Friday, on a closing basis. This combination of surpassing the 61.8% retracement level and completely filling the gap decisively negates the immediate possibility of a sustained downtrend in the Nifty, suggesting a potential shift back towards bullish momentum. Support for the Nifty has now shifted up near 24700. On the upside swing, a high of 25222 could offer near-term resistance in Nifty.

Published on June 17, 2025