Accordingly, government's measures for export promotion and support to the housing sector is expected to weaken the slowdown which has heavily impacted the economy.
"Markets seem to be bouncing up and these measures will contribute in enhancing the positive sentiments to an extent when the markets open on Monday," HDFC Securities Research Head Deepak Jasani told .
"Further upsides are likely in the coming week once the immediate resistance of 11,181 is taken out, when the intermediate downtrend will reverse. Technically, with the Nifty rallying higher after two weeks of correction, the bulls seem to be in control."
On Saturday, Finance Minister Nirmala Sitharaman announced a fresh set of measures to boost exports and the housing sector.
The key measures include extending the scheme of reimbursement of taxes and duties for export promotion, fully automated electronic refund for Input Tax Credits (ITC) in GST, revised priority sector lending norms for exports and expanding the scope of Export Credit Insurance Scheme (ECIS).
Moreover, the minister came out with several measures to prop up the country's housing sector which is considered as one of the main job creators.
According to Edelweiss Professional Investor Research Chief Market Strategist Sahil Kapoor: "Nifty is likely to continue its uptrend and may move towards 11,450 to 11,600 on a breach of 11,150 to 11,200."
"Monetary easing by multiple global central banks, expected fiscal stimulus by governments, a rise in base metals and a softer Dollar is likely to provide a back drop for emerging markets rally."
Besides, investors are expected to closely follow the macro-economic data point of WPI(Wholesale Price Index) figures.
On last Thursday, retail inflation figures for August showed a marginal rise to 3.21 per cent from 3.15 per cent in July. Nonetheless, the Consumer Price Index (CPI) was lower than the corresponding month of the last year when retail inflation stood at 3.69 per cent.
Industry observers have pointed-out that flooding in certain states have led to a continued rise in the prices of vegetables such as onions. This widened the Consumer Food Price Index (CFPI) to 2.99 per cent last month from an expansion of 2.36 per cent in July 2019 and 0.29 per cent in August 2018.
Apart from the macro-data point, Indian rupee's movement will also have a bearing on the equities.
"Last week, on the back of ECB announcement of unlimited QE of 20 billion Euro, truce talks between China and US and CNH cooling down around 7.05 aided the Indian rupee to get stronger and close the week at 70.92," said Sajal Gupta, Head, Forex and Rates, Edelweiss Securities.
"Rupee can appreciate a bit more to 70.30."
(Rohit Vaid can be contacted at rohit.v@.in)
( With inputs from IANS )