The Hindu Business Line : The Big Boys

TCS (Rs 1,798): The stock could drop to Rs 1,650-1,660. The bearish outlook would be negated on a close above Rs 1,850. Shareholders may reduce exposures and have a stop loss of Rs 1,760 for a portion of the holding.

Evidence of support at Rs 1,650-1,660 may be used to take fresh exposures with a stop-loss at Rs 1,600.

What is the outlook for ACC and IPCL? Please also provide the Elliott Wave count for IPCL. Devi Prabakar

ACC (Rs 897): The stock is in a major upward trend and there appears to be significant upside potential even after the recent run-up in price. A move towards Rs 1,150-1,200 appears likely in the near-term.

The positive outlook would be negated on a close below the stop-loss level at Rs 785. As it would not be prudent to settle for a stop-loss at Rs 785 from a money management perspective, investors may settle for a stop-loss of Rs 830.

The stock is likely to test the support zone at Rs 830-840 and resume the long-term upward trend subsequently. Long-term investors may buy the stock on weakness, with a stop-loss at Rs 785.

IPCL (Rs 248): The historical price data is inadequate to arrive at a convincing Elliott Wave count for the stock.

Though the stock has a trading history about 10 years, the price action throws up more than one plausible wave count with diametrically opposite outlook from a long-term perspective. Though we would provide our preferred wave count with outlook, this would be subject to change as price action unfolds.

The move from the low of Rs 54.95 (October 2002) to Rs 240.45 (January 2004) could be Wave 1. The subsequent fall to Rs 105.55 in May 2004 could be Wave 2.

The stock now appears to be in the midst of Wave 3 of a higher degree. If this view is valid, the stock could see quite a significant upside move from a long-term perspective. The positive view would be invalidated on a close below Rs 205.

A close above Rs 265 would confirm the positive outlook and would indicate that the stock is headed towards Rs 425-450. A weekly close below Rs 205 would indicate that the entire rally from the low of Rs 54.95 is just a correction and the stock could drop to Rs 145-150.

We favour a positive view on the stock and would remain so until Rs 205 is breached. Investors may accumulate the stock on declines, with a stop-loss at Rs 205.

Is it advisable to buy NTPC and Zee Telefilms at prevailing levels? Raju Ranjan

NTPC (Rs 138): Long-term investors may buy the stock at prevailing levels as the outlook is positive. A move to Rs 155-160 appears likely in the near term. Have a stop-loss at Rs 120 for all long positions. Investors, who feel that the stop-loss is too wide, may buy the stock on declines.