"Going ahead, we expect the markets to remain volatile and in a consolidation mode for sometime, as it would be driven by global cues, development around coronavirus cases and vaccines.
"Even valuations look a little stretched, thus markets may take a pause till some clarity emerges over whether the economy is on the recovery mode or not," said Siddhartha Khemka, Head - Retail Research, Motial Oswal Financial Services Ltd.
Companies like Tata Motors, Bank of Maharashtra, City Union Bank, LIC Housing Finance and Oil India Limited will report their earnings this week.
"Results from major PSU banks are awaited but they are also expected to somber the mood of the markets," said Jimeet Modi, Founder and CEO, SAMCO Securities & StockNote.
During the last week, the BSE Sensex declined 506.35 points or 1.47 per cent.
"Markets could consolidate early this week before attempting to move higher once again," said Deepak Jasani, Head Retail Research, HDFC Securities.
Investors will also monitor other factors like the trend in rupee and crude oil prices, analysts said.
"Currently, markets seem to be driven by global cues and stock-specific action will be the norm," Vinod Nair, Head of Research at Geojit Financial Services, said.
Global markets had tanked on Friday amid concerns over a second wave of coronavirus cases in the US.
Meanwhile, Beijing has reported a fresh batch of COVID-19 cases, sparking fears of another wave of coronavirus infections in the country.
India saw the highest single-day spike of 11,929 novel coronavirus cases in the last 24 hours, taking the number of infections to over 3.20 lakh on Sunday, while the death toll crossed the 9,000 mark, the health ministry said.