The next trigger for the markets could be policy announcements from the new government once oath taking ceremony of Prime Minister-designate Narendra Modi concludes on Monday, they added.
"Markets may remain volatile this week as traders roll over positions in the futures & options (F&O) segment.
Investors will closely watch policy announcements, if any, from the NDA government at the Centre after the oath taking ceremony," said Jayant Manglik, President-retail distribution, Religare Securities.
On Friday, equity benchmarks Sensex and Nifty galloped to new closing peaks, logging their best single-day rise in 10 days. The BSE Sensex ended at a new historic closing high of 24,693.35 while the NSE Nifty concluded at 7,367.10.
Going ahead, stock specific movements will be seen as firms, including Tata Motors, Sun Pharmaceutical Industries and Coal India, declare quarterly earnings.
Trend in investment by foreign institutional investors, global cues and movement of rupee against the US dollar will also hold key.
Ever since NDA's victory in the election, speculation has been rife about the likely allocation of key ministerial portfolios in the Modi-led NDA government.
After the BJP led-NDA's landslide victory in the recently concluded Lok Sabha election, investors are expecting measures from the incoming government to revive the Indian economy, experts said.
Jignesh Chaudhary, Head of Research, Veracity Broking Services said: "It is expected that the new government will form business friendly economic policies which will remove bottlenecks and will eventually help the economy to grow."
All eyes are on RBI's monetary policy in early June and the anticipated declaration of Union Budget proposals in the month of July, traders said.