The BSE Sensex and NSE Nifty are likely to open flat with negative bias on Monday tracking SGX Nifty and Asian markets.

At 8.20 am (IST), SGX Nifty was trading 26.50 points, or 0.31 per cent down at 8,520.

Among Asian peers, Hang Seng and Shanghai were trading 0.99 per cent and 1.17 per cent lower at 23,754 and 3,918, respectively.

Japanese stocks rose on Monday morning on relief the contraction in the world’s third-largest economy was not as bad as the market had expected. Nikkei 225 index was up 0.35 per cent at 20,590.

On Friday, domestic equity markets gained around 2 per cent on the back of buying interest till the last leg of trade. July Wholesale Price Index (WPI) contracted for ninth straight month to -4.05 per cent and cooling of CPI inflation fueled the rate cut expectations that RBI governor may cut rates before its policy scheduled in September.

For this week, Vikas Singhania, executive director, Trade Smart Online, said, “We expect Nifty index to test 8,600 mark shortly, sustainability above these levels is the key for further up move. This week, global clues will continue to dominate market sentiments. All eyes will be on Greece ahead of debt repayment deadline of Thursday (August 20, 2015).”