With no major domestic macroeconomic data to be released this week, the equity market trend will be determined by global cues, pace of monsoon and the vaccination drive, analysts said.
The expiry of monthly derivatives contracts may add to volatility, they added.
"Markets are likely to spend some more time in a range and we expect volatility to remain high due to the scheduled derivatives expiry of June month contracts. With no major event, participants will be closely eyeing the global markets for cues.
"Besides, the progress of monsoon and updates on the vaccination drive will also be in focus," said Ajit Mishra, VP Research, Religare Broking.
Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd, said, "Going ahead, monsoon and the pace of vaccination would decide the further direction of the market."
During the previous week, the 30-share BSE benchmark Sensex declined 130.31 points or 0.24 per cent. Global equities were caught off guard last week after the US Federal Reserve signalled earlier-than-expected rate hikes.
"Investors will be watching the progress on daily caseload, vaccination ramp-up and monsoon progress in the near term," said Binod Modi, Head - Strategy at Reliance Securities.
Besides, movement of Brent crude, rupee and foreign fund inflows would also be tracked by investors.
"The market is likely to continue in the consolidation phase for a short while," said Vinod Nair, Head of Research at Geojit Financial Services.
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