Daijiworld Media Network- Mumbai

Mumbai, Aug 7: Amid sideways movement in the equity markets, stock market experts have identified three stocks poised for strong upward momentum. Aakash K Hindocha, Deputy Vice President – WM Research, Nuvama Professional Clients Group, has recommended Asian Paints, Cummins India, and Eicher Motors as top stock picks for Thursday, August 7.

According to experts, Nifty has remained in a narrow range for the past eight trading sessions. After slipping below the 24,830-mark due to a bearish head-and-shoulders pattern, the index touched 24,600 and may retest 24,200 unless it closes above 24,785. A close above this level could trigger a rally towards the 25,000 mark.

Bank Nifty, on the other hand, has lost nearly 1,000 points over the past week. It is currently trading below the 55,800 support zone. Analysts believe the next direction for the index will depend on whether it stays above or falls below the 55,100–55,300 range, which aligns with a long-term trendline support.

Meanwhile, attention has shifted to three individual stocks showing signs of a breakout:

• Asian Paints:

Trading at Rs 2,491, the stock recently broke out of a nine-month consolidation pattern. The bullish triangle breakout, followed by a successful retest, has set the stage for an upward move. Technical indicators also show a pole-and-flag formation, supporting the potential for gains up to Rs 2,725. The advised stop loss is Rs 2,405.

• Cummins India:

With a current price of Rs 3,629, Cummins has displayed resilience despite weakness in broader markets. Following a breakout in June, the stock has shown strength on every dip. It is now aiming for Rs 3,900, with a stop loss placed at Rs 3,481.

• Eicher Motors:

Trading at Rs 5,665, the company has broken out of a three-month bullish triangle and is approaching its highest-ever weekly closing. The pattern of higher lows indicates steady buying at lower levels. The stock is projected to move towards Rs 5,990, with a stop loss at Rs 5,550.

With the markets awaiting a major trigger, investors are advised to keep an eye on such technically strong stocks that could offer meaningful upside in the near term.