Following the rout in world equities on fears of a possible global recession, analysts said that there were no major positive triggers in sight for Indian markets in the short-term and they would witness highly volatile sessions this week.
The Bombay Stock Exchange benchmark Sensex posted its longest four-week losing streak since October, 2008 on Friday, as it plunged by 698 points to end at the 15-month low of 16,141.67.
Experts said the market would continue to be bearish and there may be some more downslide in the absence of any positive trigger and clarity on how the European situation would be resolved.
"We are in a bear market at present and some more carnage can be expected specially in mid-cap and small-cap stocks. This week the market will see high volatility coupled with heavy selling pressure," Geojit BNP Paribas Research Head Alex Mathews said.
"In the near-term, global cues will dictate the market trend and one can see some technical bounce back after such a huge fall," he added.
Market analysts noted that bounces may not be very sharp and one needs to have a cautious approach.
"There is gloominess and uncertainty all over the equity market. Pessimism is at the highest level. But the market may make a comeback and we can see some buying at current low levels," Prabhudas Lilladher Vice-President Technical Research Hitesh Sheth said.
Finance Minister Pranab Mukherjee asserted that India's economy is "robust" and its growth story is in tact, amid fears of another global economic turmoil.
"The market can see volatile trend for days to come, may be, till September 16 when the central bank will come up with its mid-quarterly policy review. At present there are no major positive triggers for the market which can take it to higher levels," Prasanth Prabhakaran, President Retail Broking, IIFL, said.
