Besides, auto stocks will be in focus as companies will unveil their sales data for December 2013, on Wednesday. (Agencies)
Analysts said the next big trigger for the markets is October-December quarterly earnings which will begin around mid-January.
"This week, we are entering a new calendar year and as of now, the bias is in the favour of upward trend, which is likely to continue. But, we have some important data - fiscal deficit numbers, manufacturing and services PMI - scheduled in the coming sessions, so one should keep a cautious stance," said Jayant Manglik, President-Retail Distribution, Religare Securities.
According to Rakesh Goyal, Senior Vice President, Bonanza Portfolio: "FIIs have been net buyers this month till now. Political developments within the country have also been taken positively so far.
"RBI's decision to keep interest rates steady for now was also positive. So, along with strong global cues, the Nifty is seen heading towards an upward zone."
"In the coming sessions, 6,325 shall be a crucial deciding level in near term, and the index is likely to witness further buying above this level," he added.
Vivek Gupta, Director Research, CapitalVia Global Research said, "For this week, Nifty can manage to show some bull run as technically it is looking strong on charts."
Amid firm global cues and sustained capital inflows, markets closed the last week of 2013 with gains and the benchmark Sensex closed at almost three-week high of 21,193.58, up 114 points.
The Sensex has advanced 9 percent this year and is poised for its second annual gain as overseas investors pumped in almost USD 20 billion in the stock markets this year.
"2013 turned out to be quite constructive for Indian equities. Markets made fresh life-time highs on the back of improving domestic macros, supportive global equity and expected governance improvement after next general elections.
"FII's reaffirmed their commitment towards Indian equities with more than USD 20 billion invested this year," Varun Goel, Head PMS, Karvy Stock Broking said.
Starting next month, the US central bank will cut its purchases of bonds to USD 75 billion from USD 85 billion.
"Global growth outlook remains supportive of equity. In their recent meeting, US Federal Reserve has started the tapering of their bond buying programme as unemployment rates have hit a five year low. US GDP growth rate in last quarter was impressive, underscoring a strong macroeconomic recovery," Goel said.
"Expect markets to trade in a range with a positive bias for near-term," said an expert.
Besides, auto stocks will be in focus as companies will unveil their sales data for December 2013, on Wednesday.