After the BSE Sensex last week posted its biggest gain in four to end at 21,063.62, the experts are also not ruling out some profit-booking. Trends in investment by Foreign Institutional Investors, movement in global markets and the rupee trajectory would be keenly watched for cues, they added.
"Corporate earnings from Pharma, PSU, Banking and Capital Goods sectors will be important to watch from the current levels. We expect the markets to consolidate at current levels with resistance at 6,350 on the upside while 6,150-6,100 will be a strong support on the downside," said Jayant Manglik, President-Retail Distribution, Religare Securities.
Major corporates announcing results this week include UltraTech Cement, Ashok Leyland, HDFC, L&T, Cairn India and Glenmark Pharmaceuticals.
"Overall trend of Nifty is still looking bullish on chart, if it manages to cross its next resistance mark of 6,360 further upward movement can be expected," said Vivek Gupta, Director Research, CapitalVia Global Research Limited.
Caution is likely to prevail ahead of the Reserve Bank's policy review on January 28. RBI kept the repo rate unchanged after its last policy review in December and investors expect an encore this month after inflation showed signs of easing.
Jignesh Chaudhary, Head of Research, Veracity Broking Services: "Markets are keenly awaiting the interest rate decision by the RBI. We expect the Sensex to trade in the range of 20,620 to 21,700 and Nifty to trade in the range of 6,150 to 6,350 levels in the coming week."
Besides the RBI policy, traders said news flow leading to the US Federal Open Market Committee two-day meeting (January 28 and 29) will also be keenly watched by equity market investors in the coming weeks.