The US markets were shut on Monday due to the Juneteenth holiday. All eyes are on US Fed Chair Jerome Powell who is set to testify in front of Congress on Wednesday and Thursday. In earnings, investors will look toward a quarterly report from shipping giant FedEx on Tuesday after the closing bell.

Both foreign and domestic investors sold in the cash market on Monday. Foreign institutional investors (FIIs) net sold Rs 1,030.90 crore in cash, while domestic institutional investors net sold Rs 365.20 crore in cash.

Gautam Duggad of Motilal Oswal says he expects the markets to trade rangebound with a positive bias. He says midcaps and smallcaps are showing better momentum which can continue, and after a long time, both macro and micro doing well together. He says he continues to stay positive on consumption, with a preference for ITC, Britannia, Titan, Metro and Indian Hotels. "NBFC offers a good tactical trade so some reallocation from banks towards NBFC can be prudent," he adds.

In stock action today, HDFC AMC is in focus as Aberdeen is looking to sell 10.2 percent stake via a block deal. In other stocks in the news, IndiGo is in focus as the company, in the largest-ever deal, has placed an order for 500 Airbus A320 family aircraft worth $50 billion

In news outside the stock market, Prime Minister Narendra Modi has embarked on his first state visit to the United States on an invitation by US President Joe Biden. It is a rare occasion when President Biden and First Lady Jill Biden will also host him at a historic state dinner at the White House in Washington, D.C. on June 22. Catch the latest updates on Modi's visit here.