With the first quarter earnings season coming to an end, the domestic equity markets would be driven by global trends and trading activity of foreign investors this week, analysts said.
The movement of global oil benchmark Brent crude and the rupee against the dollar would also drive trends in the market.
"Macroeconomic indicators, trends in global stock markets and FII activities will be pivotal in shaping market trends in the coming days," Pravesh Gour, Senior Technical Analyst at Swastika Investmart Ltd, said.
The market will react to some key global events such as the US existing home sales, initial jobless claims, and Eurozone S&P global composite PMI, Arvinder Singh Nanda, Senior Vice President at Master Capital Services Ltd, said.
"With Fed Chair Jerome Powell's speech and more macro data lined up globally this week, we expect domestic as well as global markets to remain under pressure. Also, RBI would release its meeting minutes on Thursday.
"However, action is likely to continue in the broader market along with sectorial rotation. Index heavyweight Reliance would be in focus as Jio Financial Services is set to be listed on Monday," said Siddhartha Khemka, Head - Retail Research at Motilal Oswal Financial Services Ltd.
Jio Financial Services, the demerged financial services unit of Reliance Industries, will be listed on bourses on August 21, according to an exchange notification.
Last week, the BSE gauge fell 373.99 points or 0.57 per cent, and the Nifty declined 118.15 points or 0.60 per cent.
"Indian indices encountered a week of vulnerability due to adverse global and domestic cues, accompanied by a shift towards safer assets by investors like the USD. Discouraging domestic industrial production, negative wholesale inflation, and elevated CPI inflation contributed to market volatility.
"Additional strains emerged from stronger-than-expected US retail sales data; adding to Fed rate hike fears, concerns about US bank rating downgrades, and a sudden Chinese central bank rate cut hindered recovery and sustained selling pressure. Escalating US bond yields are predicted to restrict foreign investments in India, further impacting market dynamics," Vinod Nair, Head of Research at Geojit Financial Services, said.