Seven trading sessions, Sensex slides 4,098 points (19.67 per cent) and Nifty drops 1,301 points (20.98 per cent). Certainly, the year 2008 has not started well for the retail investor.

However, all is not lost. A falling market throws up great opportunities for the investor as well.

Sample this: Sensex heavyweight Reliance Industries [Get Quote] was on Tuesday available at one point at a low of Rs 2,120. Just last Tuesday, it had scaled a new high of Rs 3,252.

Says Gul Teckchandani, investment advisor, "It is that time when you should have a shopping list ready. Look for large-cap liquid stocks that have fallen more than the index and invest 10 to 15 per cent of your cash in them. Also, continue buying if the market falls further."

The argument is that when the market bounces back, these stocks are more likely to do well.

Adds Kartik Jhaveri, director Transcend India, "Buying would also help average out costs."

This negative sentiment over the last seven sessions has also meant that almost all the big companies are available at a minimum of 15 to 20 per cent less, giving an opportunity to the retail investor who could not participate in the earlier rally.

"There is no point in looking at small stocks because in an uncertain market, they fall much more," says Jhaveri.

Earlier, a lot of investors were forced to get into mid-cap and small-cap stocks because the big companies were too expensive. Now that they are more affordable, you can look at this as an opportunity to churn your portfolio.

This is also the time when a contrarian can do well. Look for sectors like IT, auto and auto component and specific stocks in them as they have been suffering due to a negative outlook, resulting in a sharper fall in their price earning (P/E) multiples.

"A lot of stocks suffer because the sellers tend to get into a herding mentality. Buying them now would help the investor to reap rich dividends," adds Mukesh Dedhia, director, Ghalla and Bhansali.

For the brave, this is the time to bite the bullet and cut losses. Financial experts say that getting out of 'hot tips' would be good at this time.

"Sell your rumour-based small stocks and get into large-caps by booking profit, or even if there is a small loss," says a financial planner with a leading brokerage house.

During the last week, most planners were advising customers not to get too aggressive because a slowdown was on the anvil.

However, with the last two days' of mayhem, most feel that it is best to sit tight, if you have good stocks. And if you have cash, start making a shopping list.