Airtel Shares: Block Deal Overhang? Technicals Hint At Short-Term Weakness, Says SEBI Analyst

Bharti Airtel shares fell 3% on Friday after a large block deal that saw 0.8% equity valued at ₹9,300 crore change hands. 

Reports indicate that the Sunil Mittal-led promoter entity was looking at selling stake in the telecom major. Indian Continent Investment, which held 2.47% in Airtel, is said to have trimmed its stake and is likely to reallocate the capital. 

SEBI-registered analyst Varunkumar Patel said that similar exits earlier this year (0.84% in Q1) suggest a structured, strategic approach rather than panic selling. He added that the stock witnessed short-term bearish pressure post block deal news.

Technical Outlook

Patel flagged support at ₹1,885, ₹1,857, ₹1,808, with resistance seen at ₹1,900–1,910 and ₹1,943. 

He noted that the stock was trading below its 20-day and 50-day Exponential Moving Average (EMA of ₹1,912), showing a short-term bearish crossover confirmation. Additionally, the Relative Strength Index (RSI) stands at 31, indicating that the stock is near oversold levels but hasn’t yet formed a reversal pattern.

His short-term bias is bearish unless price regains ₹1,902–1,912 zone. Over the medium-term, Patel maintains neutral-to-bullish outlook as long as ₹1,808 holds. 

He added that a sustained close above ₹1,912 (EMA 50) could open upside to ₹1,943–1,975. But a break below ₹1,857 could drag price to ₹1,808–₹1,785.

Swing Entry Idea: He advised traders to watch for RSI bullish divergence near support for a possible bounce.

Analyst Sunil Kotak noted that Bharti shares were trading at a major demand zone, with its 100-day Simple Moving Average around ₹1,860. He identified ₹1,890-₹1,920 as the supply zone for Airtel. On the daily chart, Relative Strength Index (RSI) provides support at 40.

Q1 Earnings Review

The telecom operator reported robust June quarter (Q1FY26) earnings, driven by a strong domestic performance and a rebound in its African operations.

Airtel’s mobile services revenue from Indian operations grew 21.6% while African operations revenue grew more than 25%, it said in a press release on Tuesday.

Mobile average revenue per user (ARPU) increased to ₹250 compared to ₹211 last year. ARPU is a key metric for telcos.

What Is The Retail Mood?

Data on Stocktwits shows that retail sentiment turned ‘bearish’ earlier this week after its earnings announcement. Message chatter remains ‘high’. 

Bharti Airtel shares have risen 18% so far this year. 

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