DISCLAIMER:
You don't need to have amazing reflexes to apply this strategy, anyone can do it
This is on NORMAL difficulty and it was done during a normal playthrough without any XP farming of any kind. Most materias are low level.
Getting the NO DAMAGE on Abzu is actually harder on NORMAL difficulty because we don't have access to the best materia and gear combinations yet.
ABZU NO DAMAGE - GENERAL STRATEGY
Keep ABZU under PRESSURE as much as possible
Use Arcane Ward and Fire spells almost constantly to keep ABZU PRESSURED
Use TIFA to provide ATB for the team with ATB Assist
Use TIFA's high move speed and Parry Materia to dodge POUNCE easily
GEAR & MATERIA SETUP
Cloud
Equipment:
Buster Sword (With as much magic attack power upgrades as you can)
Caliginous Bracelet
Champion Belt (Power Wristguards work too)
Materia:
Fire (any level)
MP Up
First Strike
HP Up
Assess
Healing
Steadfast Block
Ifrit
Tifa
Equipment:
Sonic Strikers
Studded Bracer (any 2 or 3 slots armor works just as well)
Fury Ring
Materia:
Fire (any level)
Elemental (linked to Fire)
ATB Assist
Parry
ATB Boost
Luck Up
Luck Up
Fat Chocobo
Aerith
Equipment:
Arcane Scepter
Caliginous Bracelet
Whistlewind Scarf
Fire (highest level you have)
Magic Up
MP Up
First Strike
Healing
Magnify (linked to healing)
Revival
Steadfast Block
Shiva
From this setup, not everything is mandatory. It's just the setup I had at this point during my 100% Platinum Walkthrough.
It's not even completely optimized for this Boss, or else I would have had Aerith equip a different weapon with higher Magic Attack, but you'll see it doesn't matter in the end.
Mandatory equipment/materia:
Fire on all 3 characters
Elemental Materia on Tifa (linked to Fire)
ATB Assist on Tifa (to keep ATB gain flowing)
Parry on Tifa (to dodge Pounce)
Fury Ring on Tifa (it's a HUGE damage boost)
First Strike on Cloud (needed for the opening sequence and pressure Abzu immediately)
First Strike on Aerith (needed for the opening sequence and pressure Abzu immediately)
That's really all you need. Rest can be changed according to your preferences.
Optional materias helpful to this strategy:
MP Up on Cloud & Aerith (we'll be casting a lot of spells)
Magic UP on Aerith (for more DAMAGE)
ATB Boost on Tifa (gets us to Chi level 3 a little faster at the start of the fight)
Ifrit on Cloud (for the stats boost)
Fat Chocobo on Tifa (for the stats boost)
Shiva on Aerith (for the stats boost)
Refocus (for the stats boost)
Barrier (for the stats boost)
Luck Up (to increase Tifa's crit chance)
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https://www.youtube.com/watch?v=klYJFbqlOyc