Thursday could be yet another choppy session for the markets as traders will adjust their positions ahead of the weekly expiry of F&O contracts, due later today.
That apart, investors will also react to global economic data points which could further fuel the volatility.
To begin with, China is slated to announce its inflation rate for August today and, as per analysts, the inflation and lending data would offer more clues on whether the People's Bank of China would lower the rates again in the next few months.
Separately, the European Central Bank will announce its interest rate decision on Thursday.
The meeting comes close on the heels of a decade-high inflation of 3 per cent, much higher than the ECB's new target of 2 per cent.
Yet, market watchers do not expect the ECB's governing council to adjust historically low interest rates or announce any significant change to their bond-purchasing programme.
Back home, stock-specific news flow, FII activity, and Covid-19 updates will continue to guide the markets.
On Wednesday, equities witnessed a lacklustre session with bouts of volatility seen towards the fag end.
The S&P BSE Sensex index tumbled 449 points from the day's high to hit a low of 57,924. It, however, recouped losses to end 29 points down at 58,250.
On the NSE, the Nifty50 index hit a low of 17,254 but closed at 17,353, down 9 points.
According to S Hariharan, Head - Sales Trading at Emkay Global Financial Services, since mid & small cap indices are trading close to resistance levels despite Nifty making new highs, overall market sentiment remains cautious.
He says cement and PSU indices appear to have highest relative strength while autos are the weakest sector in the market overall.
 "Market Ahead Podcast, Sep 9: Top factors that could guide markets today")
