Besides, trend in investment by foreign institutional investors, global cues and movement of Indian rupee against the US dollar will also influence the market trend.
"Inflation figures, global cues and third quarterly results for FY'14 will decide further market direction. In coming sessions, 6,130 shall be crucial deciding level in near term for the Nifty and the index is likely to witness further selling below this level," said Rakesh Goyal, Senior Vice President, Bonanza Portfolio Limited.
Among major earnings this week are TCS, Axis Bank, Bajaj Auto, HCL Technologies, HDFC Bank, Reliance Industries, ITC and Wipro.
Inflation based on consumer price index will come out on Monday, while that based on wholesale price index will be announced on Wednesday.
According to Bhupali Gursale, Economist, Angel Broking: "In view of continuing sluggishness in growth and with food inflation expected to moderate and bring some respite from elevated headline WPI and CPI inflation prints, we expect the RBI to hold monetary policy rates during its January 28 policy review."
"This week, we have important results from Bajaj Auto, HCL Tech and Axis Bank. The inflation data is also slated to be released on January 14. On the global side, the monthly US jobs data for December would be watched out for. The data could have a bearing on the pace of tapering from the Fed," said Sanjeev Zarbade, Vice President-Private Client Group Research, Kotak Securities.
The US economy added 74,000 jobs in December and the overall unemployment rate continued to fall, hitting 6.7 per cent, the lowest since October 2008.
The benchmark Sensex extended its losses for the second consecutive week, shedding 93 points to end at 20,758.49 on Friday.