Morgan Stanley in a Note Released Just a While ago indicates as below,
The steep fall in the Nifty raises the question whether this is the time to buy. Fundamentals will likely trail share prices, as they usually do. Valuation and sentiment indicators are the key. No doubt, some of the sentiment indicators we track appear to be reaching oversold territory and at some point in the next few Nifty points and few days, the market is likely to rally. However, until the fundamental construct remains the way it is - we think this is will be a rally to sell, not buy. We remain cautious on banks and overweight US$ hedges from a portfolio perspective.
The indicators are not universally in buy territory. While our market-timing indicator is in buy zone, one of its key components - our proprietary composite sentiment indicator - still has some distance to cover to reach oversold zone. Of this indicator's constituents - namely, flows, momentum, breadth, volatility, and positioning - only breadth and positioning suggest market capitulation. Flows, momentum and volatility portend further downside
