Key Events This Week
Jan 19: Lower circuit hit amid heavy selling pressure (Rs.401.40)
Jan 20: Second consecutive lower circuit triggered (Rs.382.00)
Jan 21: Third straight lower circuit day, volume spike on sell side (Rs.375.95)
Jan 22: Sharp recovery with upper circuit surge (Rs.377.85)
Jan 23: Week closes with renewed lower circuit hit (Rs.359.00)
19 January 2026: Lower Circuit Hit Amid Heavy Selling Pressure
Tera Software Ltd’s week began on a sharply negative note, with the stock hitting its lower circuit limit and closing at Rs.401.40, down 4.51% on the day. The intense selling pressure pushed the stock to its maximum permissible daily loss of Rs.21 per share. Trading volumes were muted at 0.05689 lakh shares, with turnover of Rs.0.229 crore, and the weighted average price skewed towards the lower end of the band, signalling sustained selling interest.
Relative to the broader market, the stock underperformed significantly as the Computers - Software & Consulting sector declined only 0.88% and the Sensex fell 0.49%. Technically, the stock was trading below its short- and medium-term moving averages but remained above the 200-day moving average, indicating long-term support. However, the sharp drop and circuit hit reflected growing investor nervousness and a bearish short-term outlook.
20 January 2026: Second Consecutive Lower Circuit Amid Waning Investor Participation
The downtrend intensified on 20 January as Tera Software again hit the lower circuit, closing at Rs.382.00, a 4.83% decline. The stock’s intraday high was Rs.399.40, but persistent selling drove prices steadily lower. Trading volume increased to 0.10309 lakh shares with turnover of Rs.0.398 crore, yet delivery volumes contracted by 17.31%, indicating reduced long-term investor commitment.
The stock’s 4.99% drop outpaced the sector’s 1.79% decline and the Sensex’s 0.97% fall, underscoring company-specific selling pressure. Technical indicators remained bearish with the stock below all key moving averages except the 200-day. The sustained lower circuit hits suggested panic selling and a lack of buyer interest at higher levels.
Built for the long haul! Consecutive quarters of strong growth landed this Small Cap from Chemicals on our Reliable Performers list. Sustainable gains are clearly ahead!
- - Long-term growth stock
- - Multi-quarter performance
- - Sustainable gains ahead
21 January 2026: Third Consecutive Lower Circuit with Rising Delivery Volumes
On 21 January, Tera Software continued its downward spiral, hitting the lower circuit limit again and closing at Rs.375.95, down 1.58%. The total traded volume was 0.07104 lakh shares, with turnover of Rs.0.26 crore. Notably, delivery volumes surged by 162.7% to 2,930 shares, indicating increased investor participation, predominantly on the sell side.
The stock’s three-day cumulative loss reached 14.17%, significantly underperforming the sector’s 1.21% decline and the Sensex’s 0.77% fall. The persistent selling pressure and circuit hits reflected panic liquidation and technical weakness, with the stock trading below all major moving averages except the 200-day. The micro-cap status and thin liquidity likely exacerbated volatility.
22 January 2026: Sharp Rebound with Upper Circuit Surge
Breaking the downtrend, Tera Software surged 0.51% on 22 January, hitting the upper circuit limit and closing at Rs.377.85. The stock gained Rs.1.90, marking a 4.99% daily rise, driven by robust buying momentum and elevated delivery volumes, which increased by 138.91% to 3,330 shares. The rally outperformed the sector’s 0.86% gain and the Sensex’s 0.54% rise, signalling renewed investor confidence.
Despite the positive price action, the stock remained below its short-term moving averages, indicating that the recovery was nascent. The upper circuit hit triggered a regulatory freeze on further buying, reflecting strong latent demand. The company’s Mojo Score of 78.0 and Buy rating supported the cautious optimism, though the downgrade from Strong Buy in December 2025 suggested tempered expectations.
Curious about Tera Software Ltd from ? Get the complete picture with our detailed research report covering fundamentals, technicals, peer analysis, and everything you need to decide!
- - Detailed research coverage
- - Technical + fundamental view
- - Decision-ready insights
23 January 2026: Renewed Lower Circuit Hit Closes the Week on a Weak Note
The week ended with another sharp decline as Tera Software hit the lower circuit limit again on 23 January, closing at Rs.359.00, down 4.99%. The stock’s intraday low was Rs.358.95, with volumes concentrated near the day’s low, signalling panic selling and unfilled supply. The stock underperformed the sector’s 0.16% decline and the Sensex’s 0.77% fall, highlighting company-specific weakness.
Trading volume was 0.09615 lakh shares with turnover of Rs.0.35 crore. Delivery volumes rose 62.58% to 3,050 shares, indicating active investor participation despite the selling pressure. Technically, the stock traded below all key moving averages, including the 200-day, reflecting a sustained downtrend. The recent downgrade from Strong Buy to Buy and the micro-cap status contributed to volatility and cautious sentiment.
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-01-19 | Rs.401.40 | -4.51% | 36,650.97 | -0.49% |
| 2026-01-20 | Rs.382.00 | -4.83% | 35,984.65 | -1.82% |
| 2026-01-21 | Rs.375.95 | -1.58% | 35,815.26 | -0.47% |
| 2026-01-22 | Rs.377.85 | +0.51% | 36,088.66 | +0.76% |
| 2026-01-23 | Rs.359.00 | -4.99% | 35,609.90 | -1.33% |
Key Takeaways from the Week
1. Persistent Selling Pressure: The stock hit the lower circuit limit on four out of five trading days, reflecting intense panic selling and unfilled supply. This was a dominant factor driving the 14.59% weekly decline.
2. Technical Weakness: Trading below all major moving averages except briefly the 200-day average, the stock exhibited a clear short- to medium-term downtrend, exacerbating bearish sentiment.
3. Temporary Rebound: The upper circuit surge on 22 January indicated a short-lived recovery attempt, supported by increased delivery volumes and strong buying interest, but it was insufficient to reverse the weekly downtrend.
4. Relative Underperformance: Tera Software’s losses significantly outpaced the Sensex’s 3.31% fall and the sector’s modest declines, highlighting company-specific challenges amid a cautious market environment.
5. Fundamental and Rating Context: Despite the volatility, the company retains a Mojo Score of 78.0 and a Buy rating, downgraded from Strong Buy in December 2025, signalling a cautious but positive fundamental outlook.
Conclusion
Tera Software Ltd’s week was marked by extreme volatility and sharp declines, with multiple lower circuit hits underscoring heavy selling pressure and investor anxiety. While the brief upper circuit surge on 22 January offered a glimmer of recovery, the stock ultimately closed the week down 14.59%, significantly underperforming the broader market. Technical indicators point to a sustained downtrend, though the company’s Buy rating and solid Mojo Score suggest underlying fundamental strength. Investors should remain vigilant, closely monitoring price action, volume trends, and sector developments before considering new positions in this micro-cap software firm.
Unlock special upgrade rates for a limited period. Start Saving Now →
