Stock markets will remain closed on Thursday for May Day.
Foreign fund flows, global cues and rupee movement against the US dollar will also hold significance for the domestic equities.
Besides, auto stocks will be in focus as companies will report sales data starting from Thursday.
Among major companies announcing quarterly results this week are Hindustan Unilever, Bharti Airtel, Jindal Steel & Power and Sesa Sterlite.
"This week will be crucial in terms of news flow as the FOMC undertakes monetary policy review at a two-day meeting on April 29-30. Besides, automobile companies will release their monthly figures for April 2014," said Jayant Manglik, President Retail Distribution, Religare Securities Limited.
The next batch of corporate earnings from pharma, PSU banking and capital goods sectors will be important to watch from the current levels. The trend reversal levels will be 6,630-6,650, below which we could see sharp profit-booking in individual sectors and stocks, he added.
According to Rakesh Goyal, Senior Vice President, Bonanza Portfolio, overall FII buying in the month in equity segment, positive global cues, status quo on interest rates this month by RBI and general optimism ahead of Lok Sabha election results have all supported the current rally on the index.
"Profit booking can be seen at higher levels, we expect the index to witness the same in coming week too," he said.
A major trigger for the stock market is the expectation of a stable government after the ongoing Lok Sabha elections that began on April 7 and will conclude on May 12. The results will be declared on May 16.
Over the past week, the benchmark Sensex fell by nearly 77 points to end at 22,688.07.