Macroeconomic data, auto sales numbers and the RBI policy to be released this week would be among the driving factors for stock markets in the holiday-shortened week, say analysts.

Stock markets would remain closed on Monday for 'Gurunanak Jayanti'.

"Going ahead, the overall structure of the market remains positive, but intermittent profit-booking cannot be ruled out given the sharp rally in the past few weeks. Globally, investors would watch out for Joe Biden transition and developments over stimulus announcement from the new US government.

"On the domestic side, the market would react to the better-than-expected September quarter GDP data. Auto companies would be in focus as November sales data would start coming from Tuesday. Banks and financial stocks would be in focus as RBI's monetary policy is scheduled on Friday," said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.

India's economy recovered faster than expected in the September quarter as a pick-up in manufacturing helped GDP clock a lower contraction of 7.5 per cent and held out hopes for further improvement on consumer demand bouncing back.

Vinod Nair, Head of Research at Geojit Financial Services said, "Markets are awaiting the outcome of major events like RBI policy meeting, the release of manufacturing and services PMI data which will be decisive factors this week."

During the last week, the Sensex advanced 267.47 points or 0.60 per cent.

"RBI's MPC meeting is scheduled this week. Markets are expected to enter a holiday mood with no major directional move in the weeks to come," said Nirali Shah, Senior Research Analyst, Samco Securities.

"Markets will first react to the GDP numbers. Besides, auto sales numbers and upcoming RBI policy meet would be on their radar," Ajit Mishra, VP - Research, Religare Broking Ltd said.

Participants would also track development related to coronavirus vaccine.