Trading sentiment in the stock market this week will be guided by quarterly results of IT majors TCS and Infosys as well as IIP and inflation data, say analysts.
"Market is trading at premium valuation supported by strong liquidity on expectation of earnings revival and positive global cues. In the immediate future market will look for more budget related cues and as per progress of Q3 results season," said Vinod Nair, head of research at Geojit Financial Services.
During the first week of 2018, the Sensex notched up a rise of 97.02 points, or 0.28 per cent while the Nifty gained 28.15 points, or 0.26 per cent.
"As earnings season will kickstart all eyes will be on the results of TCS and Infosys from IT sector and their guidance," said Mustafa Nadeem, CEO, Epic Research.
Tata Consultancy Services will announce its Q3 results on January 11, while Infosys will declare its third quarter earnings on January 12.
"Important numbers to watch would be IIP (for November) and CPI (for December) which will be released on January 12," said V.K. Sharma, head of Private Client Group and Capital Market Strategy, HDFC Securities.