"The short-term outlook continues to be murky owing to numerous problems - both domestic as well as overseas. The sentiment remains risky, " says Amar Ambani, Head of Research, IIFL.
With only three buying and selling sessions this week, experts said there could be some gains at lower levels but it might be difficult to predict from what level the bounce back is likely to occur. August 31 and September 1 are listed holidays for the stock marketplace for Eid and Ganesh Chaturthi.
Shanu Goel, Senior Research analyst at Bonanza Profile said, "The intermediate term trend continues to be bearish. Whether this level will be breached is still to be seen but uncertain local in addition to global developments continue to cast shadow on the stock market. "
Upon Tuesday, the government will release the first quarter GDP growth data, that will give an insight on RBI's likely stance when it meets on September 16 because of its policy review, experts said.
They added that auto and cement stocks is going to be in the limelight as companies from these sectors will announce from Fri their monthly sales for August 2011.
Extending losses for the fifth directly week, the BSE benchmark index Sensex closed below the 16, 000 mark for an 18-month low, losing nearly 2 per cent during the past week because of heavy capital outflows, prompted by negative external and internal factors.
Downgrading associated with Japan's sovereign debt rating by Moody's, too, weighed on the market.
At the same time, US Federal Reserve Chairman Ben Bernanke in his speech to central lenders on Friday in Jackson Hole said, "The Federal Reserve has a range of tools that may be used to provide additional monetary stimulus. "
Bernanke said the recovery will probably improve in the second half of this year, as he sought to reassure investors and the public that US growth was safe over time.