Intraday Price Movement and Trading Activity
The stock opened with a notable gap-up of 2.18%, signalling early enthusiasm among traders. Throughout the session, Tera Software Ltd’s price oscillated between a low of ₹403.45 and the day’s high of ₹433.05, ultimately settling at the upper circuit limit. The 5% price band restriction capped further gains, reflecting the maximum permissible daily price movement under exchange regulations.
Despite the upper circuit, the weighted average price was closer to the day’s low, indicating that a substantial volume of trades occurred at lower price points before the price surged. Total traded volume stood at 24,308 shares (0.24308 lakh), generating a turnover of ₹1.03 crore, which is consistent with the stock’s liquidity profile given its micro-cap status and market capitalisation of ₹510 crore.
Strong Buying Pressure and Unfilled Demand
The upper circuit hit is a clear indication of overwhelming buying pressure that outpaced available sellers. This imbalance led to a freeze in price movement as per exchange rules, preventing the stock from rising further despite persistent demand. The regulatory freeze is designed to maintain orderly market conditions, but it also highlights the stock’s strong appeal among investors on this trading day.
Notably, the stock has been on a positive trajectory, gaining 10.23% over the past two consecutive sessions. This sustained momentum suggests growing investor interest, possibly driven by favourable sectoral trends or company-specific developments. The stock outperformed its sector by 3.38% and the broader Sensex by 2.19% on the day, reinforcing its relative strength within the market.
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Technical Indicators and Moving Averages
From a technical standpoint, Tera Software Ltd’s last traded price is above its 5-day, 20-day, and 200-day moving averages, signalling short-term and long-term bullishness. However, it remains below the 50-day and 100-day moving averages, suggesting some resistance at intermediate levels. This mixed technical picture indicates that while immediate momentum is positive, the stock may face challenges breaking through medium-term resistance zones.
Investor participation, measured by delivery volume, has declined by 33.69% compared to the 5-day average, with only 14,920 shares delivered on 2 Feb. This drop in delivery volume could imply that a portion of the recent gains is driven by speculative trading rather than long-term accumulation. Nevertheless, the stock’s liquidity remains adequate for trades up to ₹0.02 crore, making it accessible for retail and institutional investors alike.
Mojo Score and Analyst Ratings
Tera Software Ltd holds a Mojo Score of 78.0, reflecting a strong buy sentiment from MarketsMOJO’s proprietary scoring system. The company’s Mojo Grade was recently downgraded from Strong Buy to Buy on 5 Dec 2025, indicating a slight moderation in analyst enthusiasm but still maintaining a positive outlook. The market cap grade of 4 aligns with its micro-cap classification, highlighting the stock’s potential for growth albeit with higher volatility risks.
Given the sector’s overall performance and the stock’s recent outperformance, investors may view Tera Software Ltd as an attractive candidate for portfolio inclusion, especially those seeking exposure to the Computers - Software & Consulting industry.
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Sector and Market Context
The Computers - Software & Consulting sector has been witnessing steady growth, supported by increasing digital transformation initiatives across industries. Tera Software Ltd’s recent price action reflects this broader trend, as investors seek to capitalise on companies positioned to benefit from rising IT spending.
On 3 Feb 2026, the sector recorded a 1.68% gain, while the Sensex advanced 2.80%. Tera Software Ltd’s 4.99% gain significantly outpaced both benchmarks, underscoring its relative strength. This outperformance may attract further attention from market participants looking for high-growth opportunities within the sector.
Outlook and Investor Considerations
While the upper circuit hit signals strong short-term demand, investors should remain mindful of the stock’s micro-cap status, which can entail higher volatility and liquidity risks. The recent decline in delivery volumes suggests some caution, as speculative interest may be driving part of the rally.
However, the company’s solid fundamentals, positive sectoral tailwinds, and favourable technical positioning provide a constructive backdrop for potential further gains. Investors are advised to monitor upcoming corporate announcements and sector developments closely to gauge sustainability of the current momentum.
Summary
Tera Software Ltd’s surge to the upper circuit on 3 Feb 2026 highlights robust buying interest and a strong market appetite for the stock. With a 4.99% daily gain, outperformance relative to sector and benchmark indices, and a solid Mojo Score of 78.0, the stock remains an attractive proposition for investors seeking exposure to the software and consulting space. The regulatory freeze on price movement underscores the intensity of demand, while technical and fundamental indicators suggest a cautiously optimistic outlook.
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