Shares of Vishal Mega Mart declined nearly 7 percent on Friday following reports of a block deal involving the company’s equity.
The stock opened at Rs 118.83 and fell to an intraday low of Rs 117 in early trade as selling pressure intensified after the transaction came to light.
Market discussions indicated that a promoter entity sold a 14.2 percent equity stake through the block deal. The total transaction size was reported at approximately Rs 7,915 crore, with a floor price of Rs 115 per share.
The decline reflects the market’s pricing in of potential supply around the floor price level.
Block deals involve the sale of a large volume of shares in a single transaction. When promoter shareholding is reduced, it increases immediate supply in the market, which can create short-term pressure on the stock price.
Market expert Abhishek Bhatt said that technical charts showed a sharp intraday decline in the stock. Such moves are typically observed when there is anticipation of significant selling activity or a block transaction.
According to the technical assessment, the Rs 115 to Rs 117 zone is emerging as an immediate support range. If this level holds, a limited rebound may be seen. However, if the Rs 115 level is breached, the next support is estimated between Rs 108 and Rs 110.
On the upside, Rs 125 is identified as the first key resistance level. Sustained trading above this level would be required for further strength. Stability above the Rs 130 to Rs 132 range would be necessary to re-establish a positive trend.
Trading volumes increased alongside the decline, indicating heightened participation during the sell-off.
Following the block deal, the stock may remain under pressure for some time due to potential supply overhang.
