Sunil Garg, JPMorgan said most major markets were deeply oversold and in most cases nearly 3 standard deviation below 26-week moving average are suggesting a strong possibility of a rebound from these levels.
Given the weak set up on monthly charts, he sees any rallies as selling opportunities. Ultimately Asian market direction will be set by S&P moves and reversing bearish view will require a combination of S&P reversing course and momentum divergences, Garg said.
According to him, the Nifty support is seen around 7,600 on the downside.
Meanwhile, Johanna Chua, Citi said downside growth risks persist in the region led by China, where July data shows no signs of stabilisation.
She expects China will pursue managed depreciation to 6.8 Yuan against USD in 12 months, which amid weak global growth sets the stage for 'hypersensitivity' to Yuan depreciation. She also sees slightly greater bias to ease monetary policy in some countries like India either via rates or let FX adjust.
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