Industrial production numbers, due on Friday, may also have some impact on trading sentiment this week. RBI's Q3 review of monetary policy for 2013-14 is scheduled on January 28 and higher inflation and weak IIP could force the central bank to increase base rates in the meeting.
"Third quarterly results for FY'14 and global cues shall be watched closely for market direction. In the coming week, 6,250 shall be the crucial deciding level in near term for Nifty and the index is likely to witness further buying above this level," said Rakesh Goyal, Senior Vice President, Bonanza Portfolio.
Infosys is scheduled to release earnings on January 10.
Market participants said investment by foreign institutional investors, global cues and movement of rupee against the US dollar will also be key for the stocks.
Industrial output data will be followed by December consumer and wholesale inflation data in the week starting January 13.
"For this week Nifty can show correction as technically it is looking strong on charts. In coming session if it manages to cross its resistance level of 6,270 it can test the levels of 6,380 and 6,455," said Vivek Gupta, Director Research, CapitalVia Global Research Limited.
According to Milan Bavishi, Head Research, Inventure Growth and Securities: "The period of January-February is seen to be a turning point at several instances in the past. So, it is time to get cautious in the markets. Expect volatility to rise once the new-year holiday mood is over."
The market ushered in the New Year on a tepid note as the BSE benchmark Sensex dropped 342.25 points last week, the worst performance for the index since the period ended November 8.