Domestically, there are not many triggers, and the coal scam, which may rock parliament on Tuesday, may act as a wet blanket for a strong upward momentum. The CAG report on coal allocation has virtually dragged all of the major corporates.
The CPI is an important data points for the Reserve Bank of India in determining its monetary policy and would hence be keenly watched by the markets. The CPI data is expected on Tuesday.
On Wednesday investors will look to the minutes from the Federal Reserve's last meeting that ended on August 1. Any hints of a quantitative easing in the Fed minutes, could spark a global rally in stocks.
Also, sharp upward movement in crude which has rallied spectacularly over the last few weeks could dampen sentiments.
It would be interesting to watch some of the companies whose shares were dragged down on Friday after the CAG report on coal and the Delhi International Airport were tabled. Shares of Reliance Petroleum and GMR, which runs the Delhi International Airport saw a sharp drop in their shares prices.
Markets would also track the movement of the rupee, which has been showing signs of weakening over the last few trading sessions. Any sharp fall in the currency, could also have an adverse impact on the equity markets.