If you are looking at the market to buy something, you are a trader and not an investor. Traders buy stocks. Investors buy companies. Stop being a trader and become an investor. Think of the companies you will want to be a part of if the country is locked down for ten years and the stock market is closed. Would you be comfortable buying penny stocks in such a scenario? Definitely not, I guess! Hence, only buy companies for good fundamentals. Do not go for too many. Buy good companies that have an unparalleled business and which have no or fewer market competitors.
You have to do that research yourself: no one can do that for you. [In fact, if I knew which would be the best company to buy, I would just go and buy that stock myself instead of advising people. ]
Let me give an example. Think of the adhesive industry. When do you think of adhesives, which brand do you think of as the market leader? I personally believe it is Favicol: as of now, there is no alternative to it in the Indian market. Every single wood furniture, every single carpenter makes use of it. Do you see any competitor of Favicol in the near future? I do not. Do you see wood furniture going out of fashion soon? I do not. Hence, the adhesive business is here to stay, and Pidilite Industries is a good buy, irrespective of what the price is telling you. Do not look at prices. Look at the value that the company offers. Think whether you are yourself a customer of that business and what kind of review you would write as a customer. If you think you would give the brand a five-star rating, it is always a good idea to go forward and buy that, irrespective of the market ups and downs. Because, when you are investing for the long haul, such dips and ups hardly matter. If you take out your spreadsheets, you will see that investing in dips to buy good companies and always timing the market right (although that is practically impossible) would hardly give you 5% extra than if you have never looked at the market prices and just went ahead to buy the companies you thought you would buy anyways. Why lose your sleep over just 5%?