Stocks markets are likely to be volatile in near term and will take cues from a host of events including first quarter numbers from Infosys, industrial output growth for May and rupee movement, say experts.
"Corporate earnings season is set to start this week with Infosys, and that will be the major driving factor for domestic equity market. Better-than-expected US economic data last week has not caused crash in equities and that's a good sign," said Vikas Jain, founder Aditya Trading Solutions.
"However, still, volatility will remain as investors will seek more clarity on how Fed will start trimming its bond buying, and as unrest in Egypt intensifies, hurting commodity prices," Jain added.
Rakesh Goyal, Senior Vice President, Bonanza Portfolio said: "Economic indicators like inflation and IIP numbers shall be watched closely for further market direction."
In coming sessions, 5,900 shall be crucial deciding level for Nifty in near-term, and index is likely to witness further buying above this level, Goyal noted.
IT major Infosys will kick start the first quarter results season from Friday, July 12, 2013.
"Next important trigger is Infosys results and before that market will remain lacklustre," said Kishor P Ostwal, CMD, CNI Research.
On the macro front, industrial output data for May will come out on Friday. Inflation based on consumer price index for June will also come on the same day.
Investors will also closely track movement of rupee against the dollar and crude oil prices. Crude oil prices was trading at USD 107.74 a barrel.
The rupee on Friday declined to 60.22 on fresh dollar demand from importers. The rupee had hit a record low of 60.76 per dollar on June 26.
Indian markets last week reacted to unforeseen events in Portugal, Greece and Egypt on the one hand and the volatile rupee, on the other.
The US unemployment rate in June has remained unchanged at 7.6 per cent as more than 1,95,000 jobs were added to the economy last month, latest official figures said on Friday.
The BSE benchmark Sensex last week rose by 100 points or 0.51 per cent to 19,495.82.