Out of the 50-scrip Nifty basket of shares, 43 shares have declined in the six-day correction in the markets. Top Nifty laggards are IndusInd Bank, Vedanta and Tata Steel, falling 19.83 per cent, 14.12 per cent and 13.56 per cent respectively.

On the other hand, Indian Oil, HCL Tech and Bharat Petroleum - up 2.87 per cent, 2.80 per cent and 2.21 per cent respectively - are the best three of the seven scrips that have bucked the trend.

Key events to watch: TCS will be announcing its earnings for the quarter ended September 30 on Thursday. Infosys will report its results the next day. Official data on industrial production for the month of August is due at 5:30 pm on Friday. Separate data sets on consumer as well as wholesale inflation will be out on Monday.

Analysts say the earnings reports by the IT majors along with the macroeconomic data will determine the investor sentiment in the near term. "Going ahead, we may see some bounce due to oversold positions in the index but the bias would remain on the negative side. We reiterate our cautious view and suggest preferring hedged trades," said Ajit Mishra, vice president-research, Religare Broking.

India's struggle with slowing economic growth took a further hit last Friday, when the Reserve Bank of India cut its real GDP growth forecast for 2019-20 to 6.1 per cent from 6.9 per cent.

Any developments on the US-China trade front will also be monitored closely.

The US government widened its trade blacklist to include some of China's top artificial intelligence startups. US officials said the action was not tied to this week's resumption of trade talks with China, but it signals no let-up in US President Donald Trump's hard-line stance as the world's two biggest economies seek to end their 15-month trade war.

On Monday, US and Chinese deputy trade negotiators launched two days of talks aimed at paving the way for the first minister-level negotiations in months on Thursday and Friday.

Some analysts say the Nifty is positioned at support levels at the current juncture. "A close above 11,250 will confirm a near-term bottom for the index. Since past several sessions the index has been witnessing a correction after the vertical sharp rise," said Manav Chopra, CMT, head research-equity, Indiabulls Ventures. Mr Chopra expects the index to find support at 11,150-11,000 levels.