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You need to take heap dumps and analyze if its due to memory leak or your app requires more heap memory .You can refer the below blogs for more information on the same.
Check out the whitepapers related with GC Tuning and Memory:
Few places needs to be monitored in the application server.
1. Is there any Pattern when the server gets shutdown? Pattern i meant - any specific activity makes the server down
2. What is the Java you are using? Sun or JRockit?
3. May be - you can set up the application with JRockit - and monitor with the JRockit Mission Control or if it is Sun Java, use the JVisual VM for monitoring the JVM usage.
4. You can configure the JProfiler to monitor the JVM.
5. Monitor the Logs - and check for the JVM Settings that are getting applied.
6. Are you starting up the managed server via - nodemanager (weblogic admin console) or Command Line?
I hope you have server logs with you.
I appreciate if you can put them here.
As you also mentioned me that server instance is also getting terminated then check whether you have any hs_errpid file or not.
I will take a look and let you know.