35 basis not in sensex but in NSE PE
http://www.nseindia.com/content/indices/ind_pepbyield.htm which means a fall of .35 from current PE and so on.
If 1 buy on 600-700 correction than they'll not make money. 2 reasons - market don't run on our decision i.e. if we decide market will fall 600-700 points thats almost 4-5%, it'll never happen. Market gives surprises. It may go down to 16000 but before that it'll surely see 18000. So 1 have to be a buyer on dips. And 2ndly, if 1 is investing 10000 at 100 NAV and market falls 5%, his NAV becomes (assume) 95. For 10000 person got 100 units at 100 NAV. Now if market again falls 5% than a 10000 investment will fetch 111 units. Now total units are 211 and NAV price is 90, current value becomes 18990 and loss of almost 1000 or 5%. So where is buy on dips? Therefore every small dip should be bought and every rise should be sell plus one should have deep pockets to cover 5% falls.