Nifty future is making lower tops and lower bottoms, on charts its clear downtrend. Mechanical indicators shows nifty is extremely oversold, some bounce must follow soon. We are of view that nifty future will bounce as it is trading near it support level of 5200. Being stock specific we have top 15 large cap stocks which are also trading at strong support level. Slow stochastic indicator is showing bullish divergence on weekly charts, hence a stronger bounce will be ruled out. On daily chart we are seeing doji formation, suggesting change in direction of current momentum. Most of short positions were booking profits today about 1.5 million shares were shed from open interest suggesting short covering in current F&O series.