By now, most investors have heard the rallying cry of this market: "Just buy the dip!" However, the tape has been so strong that it can sometimes be difficult to find substantial dips that provide a good, low-risk entry point to begin building a position. But some potentially promising opportunities do exist. The first of these is an ETF that tracks the Indian stock market -- the iPath MSCI India Index ETN (INP).

This ETF has lost around 13% over the last three months and a little more than 4% during the last month. Year-to-date, it is down more than 14% as Indian stocks have been hurt by interest rate hikes, which have been instituted to try to tame inflation.

Q. Pratik, the Indian stock market had incredible momentum, reaching 20,000+ at the beginning of this year, but has suffered substantially with the global economic crisis, and now is trading around the 10,000 mark. Where does it go from here?

A. Many sectors of the Indian market are currently being priced as if there is a systemic crisis in India. That is not the case at all. Indian banks are healthy, and domestic savings is north of 30+%, providing a stable and solid deposit base for banks.

Where the market goes from here is anyone's guess, but I'm seeing one of the best risk/reward scenarios I've ever seen. This is not across the board, but in select areas that are not included in the main indices.

I like those companies that serve a domestic market where the supply/demand dynamic is [favorable]. In this environment, taking a top-down sector approach may not be as good as taking a company-specific approach. Companies that have zero debt, solid balance sheets, and have lots of free cash flow are appealing. History has shown that [companies that] come out of periods like this with assets unimpaired will do really well.

Q. What indicators would tell investors it is time to get back into the Indian markets?