"As we have F&O expiry of December month contract scheduled this week, intra-day volatility would be a major concern among the day traders so it is advisable to keep the positions hedged and maintain a stock-specific approach," said Jayant Manglik, President-Retail Distribution, Religare Securities.
"In the coming week, banking, selected FMCG, media and realty stocks are likely to remain in limelight," he added.
The benchmark S&P BSE Sensex rose by 364 points last week to close at 21,079.72. The NSE Nifty closed at 6,274.25.
Stock markets would be closed on Wednesday on account of Christmas.
Brokers also said trading volume is expected to be light, with many foreign fund managers on annual vacation.
Market participants said the next major trigger for stocks would be the December quarter earnings, that is expected to start trickle in from the second week of January.
"For this week, Nifty can manage to show some bull run as technically it is looking strong on charts and has tested its nearby resistance level. If Nifty manages to cross its major resistance level of 6,320, it can test the levels of 6,370 and 6,452," said Vivek Gupta, Director Research, CapitalVia Global Research Limited.
With the two major decisions by central banks out of the way, markets will now be guided by further announcements of the taper and implementation of the same, political expectations and corporate performance, according to Dipen Shah, Head - Private Client Group Research, Kotak Securities.
Amid lack of any major near-term trigger, markets would track the overseas investors investment trend after the US Federal Reserve announced a USD 10 billion cut in its monthly bond-buying programme from January, 2014.
Trends in other global markets and movement of the rupee against the US dollar would also be key in near-term, experts said.
The US market will also be watching for some data releases, including durable goods orders, new residential sales and the weekly jobless claims report, they added.