Stock markets will be driven by global trends, crude oil movement and foreign institutional investments this week, analysts said, adding that benchmark indices may also face volatility amid the scheduled monthly derivatives expiry.
Moreover, the movement in the rupee and the progress of monsoon would also be watched by investors, they added.
"Indian markets managed to recover from lower levels after two weeks of sharp cuts thanks to a recovery in global markets and a cut in commodity prices. It seems that this recovery may see a further extension and we can expect a decent rally in the coming days in equity markets," said Santosh Meena, Head of Research, Swastika Investmart Ltd.
"Apart from F&O expiry, monthly auto sales numbers and monsoon development will be important triggers," Meena said. Crude oil, rupee movement and FIIs' behaviour will be other important factors, he added.
Ajit Mishra, VP - Research, Religare Broking Ltd, said, "We expect volatility to remain high this week as well, thanks to the scheduled expiry of June month derivatives contracts."
"Besides, the performance of global indices especially the US, crude movement and monsoon progress, etc will remain on the radar. This week also marks the beginning of a new month so auto numbers will also start pouring in from July 1," Mishra added.
The 30-share BSE Sensex jumped 1,367 points or 2.66 per cent last week after two straight weeks of losses. The broader Nifty gained 405.75 points or 2.64 per cent.
Yesha Shah, Head of Equity Research, Samco Securities, said, "This week has a host of events arriving which could affect the mood of the market. Globally, investors will keenly analyse the US quarterly GDP growth rate numbers."
In India, vehicle sales figures will continue to fuel stock-specific moves on D-Street as investors attempt to decipher the future trend, Shah said, adding that the monthly F&O expiry in the second half of the week may cause volatility in the indices.