Come Monday, shares, which have logged new highs in the past few sessions, will immediately react to GDP data that was released after markets closed on Friday.

Economic growth fell to 5.3% in the second quarter compared to 5.7% in the June quarter. This has raised the clamour for a rate cut by the RBI in its December 2 policy review meeting.

"We believe the ongoing positivity will extend further and index will touch newer high in this week. However, things won't be easy for traders as volatility may continue to surprise due to list of events and data," said Jayant Manglik, President Retail Distribution, Religare Securities Limited.

The release of HSBC manufacturing PMI data for November on Monday and HSBC India services PMI on Wednesday would also help shape directions.

Additionally, markets would be keeping a close eye on auto stocks as these companies would be unveiling their monthly sales figures.

"Markets are hoping for a rate cut in the RBI policy meeting this week," said Dipen Shah, Head of Private Client Group Research, Kotak Securities.

Besides, investors would also track the ongoing winter session of Parliament amid expectations of more reforms.

"Movement of index in near-term will consistently remain on further reform initiatives to be taken in the ongoing winter session of Parliament, much awaited RBI's monetary policy on Tuesday and auto sales numbers in start of the month," said Vivek Gupta, CMT - Director Research, CapitalVia Global Research Limited.

Over the past week, the BSE benchmark Sensex gained 359.36 points to settle at 28,693.99. The index hit its all-time high of 28,822.37 on November 28.

Globally, European Central Bank (ECB) will meet on December 4 to discuss monetary policy. Hopes are high that ECB would unveil more stimulus depending on economic conditions.

The US nonfarm payrolls report for November will be out in the US on December 5.

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