Tumbling domestic stock markets are likely to see further losses in the coming days, with the benchmark Sensex estimated to fall by another 1,000 points.

Some analysts expect the stock markets to fall by another 3-5% in the near-term, in addition to the nearly 6% decline witnessed on Monday. So, investors have been advised to sell stocks on rallies.

"Monday's fall is the beginning of a larger corrective pattern which should normalise the bull market rally which began in August 2013. We believe that the markets could fall by another 3-4 per cent, but eventually, go sideways at 25000 levels on the Sensex or 7500 levels on the Nifty," Jimeet Modi, CEO, SAMCO Securities, told The Economic Times.

The BSE Sensex index plunged 1,624 points on 24 August, posting its biggest intraday fall in seven years amid a massive sell-off in global markets. The NSE Nifty fell 490.95 points or 5.92% to end the day at 7,809.

Foreign institutional investors (FIIs) have offloaded shares worth nearly Rs 9,000 crore in the past four sessions, amid growing concerns over the slowdown in the world's second largest economy China and fall in commodity prices.

"It is impossible to call this as bottom for the market, but an investor should begin staggered purchases in the current markets. For an Investor, things look a lot better at 7700 than at 8600 with a much bigger margin of safety," he added.

Chinese stock markets plunged over 7% for the second consecutive day on Tuesday, after falling by over 8.5% in the previous session.

Tracking the fall, the US stock markets ended nearly 4% down on Monday, posting their worst decline in four years. Asian, European markets also tumbled to multi-year lows, as worries grew over slowing economic activity in China.

"Coming two-to-three days would be a bit challenging, so don't hurry for fresh buying or short selling till the dust settles and clarity emerges," said Rohit Gadia, Founder & CEO, CapitalVia Global Research Ltd.