Stock market expert Ruchit Jain of 5paisa.com advises investors not to read too much into this correction and considers it a temporary phase. If the market extends towards the 18,070-18,080 level, it becomes crucial to monitor whether it breaks or holds.

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However, the recommendation for now is to adopt a "buy on dip" approach and consider entering the market in the range of 18,070-18,080, according to Jain this is where a favorable risk-reward profile for going long on the Nifty is expected.

From the perspective of specific stock recommendations, Jain suggests that Hindustan Unilever (HUL) is one stock that investors can consider at the current levels. Furthermore, investors could look to add more shares on dips if a breakout from the falling trendline is observed.

Jain points out that this breakout comes after a long consolidation period of approximately 9 to 10 months, making HUL an attractive prospect.

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For those considering HUL, a stop-loss below Rs 2,610 is recommended, with targets set around Rs 2,730. It is worth noting that HUL shares have remained relatively flat over the last month.

In the auto sector, there has been a notable outperformance, which is expected to continue based on the Nifty Auto Index.

Escorts, in particular, has displayed strong price volume action, making it an appealing choice for long positions. Jain advises setting a stop-loss below Rs 2,060, with near-term targets set around Rs 2,170. Over the last month, Escorts shares have gained more than 7 percent each, highlighting the positive momentum in the stock.

Disclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.

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(Edited by : C H Unnikrishnan)