July 15: The Telco scrip is likely to throw up profitable opportunities. Telco had gone up from Rs 340 at the end of March, 1997 to Rs 471 by June 23. In the reaction that has set in as a result of the political turmoil, the scrip has fallen through its support line, which was at Rs 434. On Tuesday at the NSE, it opened at Rs 428 and touched a low of Rs 410. It has closed higher at Rs 413. In terms of price retracement, Rs 416 would have been the level where it would have shed 38.21 per cent of its gain, a technically significant point. If the scrip sheds 50 per cent, it should touch Rs 399.

Since the scrip has shown a significant fall, it should attract long term investors soon. Short term traders will not let go off this opportunity. Watch the hourly movement and I suggest entry close to Rs 402 with a stop loss at Rs 397. Re-enter if necessary.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.