Mid cap IT company Mindtree declared its first quarter earnings post market hours yesterday. The company has declared good set of numbers with net profit at Rs 471.6 crore, up 37.3% on YoY basis. The revenue from operations came in at Rs 3,121.1 crore, up 36.2% on year on year basis.

The numbers from the company came above the market consensus but due to the ongoing weakness in the IT sector amid the stock price of the company has also shown negative reaction in the today’s session.

After the bad set of earnings from the IT major TCS, the investment sentiment in the information technology sector have remained subdued.

On the technical front, the stock is currently in the consolidation zone on the daily charts with strong supports placed near 2600-2650 on the lower side below which next support is at 2500 levels. On the higher side, the stock will be in the bullish zone only when the stock price will cross 3000 levels decisively.

We expect IT stocks to witness selling pressure on any rise in this series given heavy short build up in the futures and options space. On the other hand, INFY and WIPRO are expected to declare their quarterly earnings in next few days which will be the next major trigger for the sector.