"Considering last week's close, this week would continue to keep participants on their toes. On domestic front, they will be eyeing IIP data scheduled on September 11.
Though there's no major planned event or data except IIP, investors are hoping for some positive surprise from the government and RBI, to help in stabilising the equity market.
"Needless to say, global trend will also influence the move as participants are eyeing updates mainly from China and the US," said Jayant Manglik, President, Retail Distribution, Religare Securities.
From the global front, investors are eyeing monetary policy action by the Federal Reserve.
"For the short term global market movement will be dictated by the FED meet.
We expect volatility to stay until FED gives an indication regarding a rate hike," a report by Bonanza Portfolio said.
The prospect of a higher US rate, which leads to risk aversion in riskier assets, has so far roiled the scene in emerging markets, which have run up massive losses of late.
"Bearish sentiments are running too high and therefore a bounce back is expected this week. All attention will start shifting from China to the US to take the cues on interest rates," said Jimeet Modi, CEO, SAMCO Securities.
"The big plunge in Indian equities recently, triggered by global sell-off, offers a significant buying opportunity for investors," said Vijay Singhania, Founder Director, Trade Smart Online.
On a weekly basis, the Sensex lost 1,190.48 points or 4.51 per cent and Nifty fell 346.90 points or 4.33 per cent.
This is the fourth straight weekly plunge for both the indices.
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