Analysts opined that markets are likely to oscillate between renewed fears of rising covid cases globally and optimism over vaccine development.
Besides, profit booking as well as expensive propositions might dampen sentiments.
Nevertheless, upcoming Q2FY21 GDP figures combined with sales push during the festive season is expected to arrest any major downslide movement.
"Going ahead, the market is likely to be volatile as sentiments oscillate between fear of rising covid cases globally and optimism over vaccine progress," said Siddhartha Khemka, Head of Retail Research, Motilal Oswal Financial Services.
"Investors would closely watch out the development over the US stimulus talks where the hopes are fading. However the overall structure of the market remains positive, as the economic activity continues to improve and Covid cases continue to decline domestically, except few regions."
Besides, market observers pointed out that healthy fund inflows and expected positive macro economic data points will buoy sentiments.
As per estimates, more than Rs 25,000 crore have flown into the country's stock markets till now during November.
"Nifty ended the week with gains of 0.6 per cent, the smallest gain in the past three weeks. This reflects the conflicting state of markets after showing continuous upward movement since late September," said Deepak Jasani- Head of Retail Research at HDFC Securities.
"The fact that market manages to turn upwards on an intra day or overnight basis after dipping is heartening, keeping hopes of some more upmove alive."
"In terms of Nifty 12,963 and later 13,250 remains a resistance while 12,730 remains a support."
According to Joseph Thomas, Head of Research - Emkay Wealth Management: "The prospects of more money coming in from foreign institutional investors and a relatively better macro-economic scenario should help the markets in the coming days though the possibility of some profit-taking cannot be entirely ruled out."
Last week, Indian equity markets extended their gaining streak, as investors bet on a faster return to economic growth following upbeat news on a Covid-19 vaccine.
However, some profit booking was also seen in between as global cues were mixed amidst the US Treasury's decision to end all the emergency loan programmes, while new shutdowns were being implemented in major US cities post the sharp rise in Covid cases again.
(Rohit Vaid can be contacted at email@example.com)