Intraday Performance and Price Action
On 21 Jan 2026, Tera Software Ltd’s share price plummeted by ₹19.00, closing at ₹361.05, which was also the day’s low. This represented the maximum permissible daily loss of 5.0%, triggering the lower circuit breaker and halting further declines. The stock’s high for the day was ₹378.80, indicating a significant intraday range of ₹17.75. The weighted average price was skewed towards the lower end, signalling that most traded volumes clustered near the day’s low, a classic sign of sustained selling pressure.
Volume and Liquidity Insights
Trading volumes were relatively modest, with total traded volume at 0.07104 lakh shares and turnover amounting to ₹0.26 crore. Despite the micro-cap status and limited liquidity, the stock remains sufficiently liquid for small trade sizes, with a 2% threshold of the five-day average traded value supporting trades up to ₹0.01 crore. Notably, delivery volumes surged to 2,930 shares on 20 Jan 2026, a 162.7% increase compared to the five-day average, indicating rising investor participation but also heightened selling interest.
Technical and Trend Analysis
Technically, Tera Software Ltd’s price remains above its 200-day moving average, suggesting some long-term support. However, it is trading below its 5-day, 20-day, 50-day, and 100-day moving averages, signalling a bearish short- to medium-term trend. The stock has been on a consecutive three-day decline, losing 14.17% over this period, which is significantly worse than the sector’s 1.21% drop and the Sensex’s 0.77% fall on the same day. This relative underperformance highlights the stock’s vulnerability amid broader market weakness.
Handpicked from 50, scrutinized by experts – Our recent selection, this Mid Cap from Bank - Public, is already delivering results. Don't miss next month's pick!
- - Expert-scrutinized selection
- - Already delivering results
- - Monthly focused approach
Market Cap and Sector Context
Tera Software Ltd is classified as a micro-cap company with a market capitalisation of approximately ₹458 crore. Operating within the Computers - Software & Consulting sector, the stock’s recent performance has lagged behind sector peers, which have shown more resilience despite broader market volatility. The sector’s 1.21% decline on the day contrasts sharply with Tera Software’s 5.0% drop, underscoring company-specific challenges or investor concerns.
Investor Sentiment and Panic Selling
The sharp fall and circuit hit reflect a wave of panic selling, likely driven by a combination of profit booking, negative sentiment, or possibly adverse news flow. The unfilled supply at lower price levels suggests that sellers overwhelmed buyers, pushing the stock to its daily loss limit. This kind of selling pressure often triggers stop-loss orders and further accelerates declines, as seen in the three consecutive days of losses.
Mojo Score and Rating Update
According to MarketsMOJO’s latest assessment dated 5 Dec 2025, Tera Software Ltd holds a Mojo Score of 78.0 with a current Mojo Grade of Buy, downgraded from a previous Strong Buy. This downgrade reflects a reassessment of the company’s fundamentals and market conditions, signalling caution to investors. The market cap grade stands at 4, consistent with its micro-cap status. Despite the recent price weakness, the stock’s rating suggests potential value for investors willing to navigate volatility.
Want to dive deeper on Tera Software Ltd? There's a real-time research report diving right into the fundamentals, valuations, peer comparison, financials, technicals and much more!
- - Real-time research report
- - Complete fundamental analysis
- - Peer comparison included
Implications for Investors
For investors, the lower circuit hit is a clear warning signal of heightened risk and volatility. The stock’s underperformance relative to its sector and the broader market suggests company-specific headwinds that require close monitoring. While the Mojo Grade remains a Buy, the recent downgrade and price action imply that investors should exercise caution and consider the stock’s liquidity constraints before initiating or adding to positions.
Outlook and Conclusion
In summary, Tera Software Ltd’s plunge to the lower circuit on 21 Jan 2026 highlights intense selling pressure and a fragile investor sentiment environment. The three-day consecutive decline and unfilled supply at lower price points underscore the challenges facing the stock in the near term. However, the company’s fundamentals, as reflected in its Mojo Score and Buy rating, may offer a foundation for recovery if market conditions stabilise and investor confidence returns. Close attention to upcoming financial results and sector developments will be crucial for assessing the stock’s trajectory going forward.
Unlock special upgrade rates for a limited period. Start Saving Now →
