Ashish Dhawan's favourite mid-cap stock registers a solid breakout; don't miss out!

Looking ahead, the stock is anticipated to report its earnings on August 08, 2023. As such, it is advisable to keep a close watch on this stock for potential developments.

On Friday, the bulls came out all guns blazing as Nifty and Sensex rose by 0.70 and 0.74 per cent, respectively. A large number of stocks were seen buzzing in trade; however, one stock caught the attention of market participants: Religare Enterprises Ltd.

The stock of Religare Enterprises jumped over 8 percent and settled at Rs 191 per share on the NSE. This surge marked the highest single-day volume since April of last year. Currently trading near its 52-week high, what’s even more interesting is the breakout of the ‘Cup and Handle’ Pattern—a formation that has been developing over the course of eight months. The significance lies in the fact that this breakout is accompanied by above-average volumes, which validates the Dow Theory principle of strength in numbers, highlighting larger participation in the direction of the trend.

Furthermore, the stock is trading well above the key moving averages: it stands 11 per cent above the 50DMA and 14 per cent above the 200DMA. Notably, all the moving averages are aligned in an uptrend, following the desired sequence. The leading indicator, the 14-period daily RSI, resides in a super bullish zone and marked a fresh swing high on Friday. Additionally, the daily MACD remains bullish, positioned above its zero line and signal line, with the MACD histogram indicating an uptick in upside momentum.

Perhaps the most fascinating aspect of this stock is its shareholding pattern for the quarter ended June 2023, revealing the presence of a leading name in the investment fraternity: Ashish Dhawan. Ashish Dhawan, co-founder of ChrysCapital, one of India’s premier private equity firms, holds 1.66 percent stake in the company. Notably, ChrysCapital is one of the largest funds in India.

Looking ahead, the stock is anticipated to report its earnings on August 08, 2023. As such, it is advisable to keep a close watch on this stock for potential developments.

Disclaimer: The following information is for informational purposes only and should not be considered as a recommendation to invest in any particular stock or security.