Trend from global equities, macroeconomic data as well as movement of the rupee and crude oil prices will set the tone for the stock markets in the holiday-shortened week ahead, say experts.
Bourses would remain closed on Wednesday and Thursday for 'Diwali Laxmi Pujan' and 'Diwali Balipratipada'.
The BSE and NSE will conduct a special 'Muhurat' trading session on Wednesday, November 7.
'Muhurat' trading, which is conducted on the auspicious occasion of Diwali, will be held between 1700 hrs and 1830 hrs, the stock exchanges had said on Friday.
PMI data for the services sector is scheduled to be released Monday, which might have a bearing on market sentiment, experts said.
On the global front, the US Fed interest rate decision will be closely watched.
"For markets as we said, it will be global cues and any positive news or move from western markets will have an exponential factor for domestic markets and the recent drop in crude is further keeping sentiments positive.
"IIP numbers, inflation are lined up and will be watched in the second week. The volume may remain thin due to holidays on the occasion of Deepawali," said Mustafa Nadeem, CEO, Epic Research.
The rupee Friday clocked its biggest single-day gain in over five years, surging by 100 paise to close at 72.45 against the US dollar.
Cipla, Gail (India) and Indian Bank are among the corporates scheduled to announce their earnings this week.
Over the last week, the Sensex surged 1,662.34 points or 5 per cent to close at 35,011.65.