And why not. For the first quarter, the company posted a net loss of Rs 74 crore-significantly higher compared to Rs 34 crore in the corresponding period in the previous year.

With demand showing not-so-impressing growth, the results in the second quarter are expected to be equally unimpressive. The car project's fate will continue to affect the company's performance. The small car segment is a highly competitive segment, and with a decline in sales, the company will find it difficult to achieve the break-even in the short tern.

Even in the utility vehicle segment, the entry of strong players with new players, like M&M's Balero and Toyota's Qualis will also put some pressure on company's performance. The outlook for commecrial vehicle segment too is not very rosy. Besides, the overall rise in cost will make things difficult for Telco in the short run. Overall, the losses are unlikely to show a major dip in the coming quarters.From the stock market point of view, while performance is still the main concern, if the car project is hived off, it can act as a booster to the stock price in the short run. The car project has been affecting the company's performance badly, and a hive off would mean a better margin for Telco. Reportedly, the company however has refused to implement such a plan.

Overall, the short-to-medium term outlook for the company is negative. While most of the negative developments have already been factored in the stock price, any positive news can give a short-term spurt to the stock.

Technically speaking, the performance of the stock has been far from impressive. The stock is below all medium term supports.

For those who have a optimistic view, and hold long positions, the level of Rs 79 can be used as a stop loss. On the upper side, major hurdle exists at Rs 105. The next resistance for the stock is at Rs 140.

Deepak Singh Tanwar