Though, the question is asked long back, I see this same issue recently after installing Android Studio 2.1.0v, and JDK 7.80 on my PC Windows 10, 32 bit OS. I got this error.
No JVM installation found. Please install a 32 bit JDK. If you already have a JDK installed define a JAVA_HOME variable in Computer > System Properties > System Settings > Environment Variables.
I tried different ways to fix this nothing worked. But As per System Requirements in this Android developer website link.
Its solved after installing JDK 8(jdk-8u101-windows-i586.exe) JDK download site link.
Hope it helps somebody.