Best place to add an LED

Hi can somebody tell me where the best place to add a power LED for this circuit is.?
**broken link removed**

I placed the LED as in the diagram. But when the AC supply is not available the LED starts to lights up. Because current is supplying from the battery through regulator.

Shall I add a diode in between the X & Y points?

Thanks.

Where you got the LED is fine. You need to put the diode in series with the battery and increase the regulator voltage by 0.7V (Adjust R2). This way, the battery will not discharge through the regulator / R1 & R2 when the AC supply is not available.