Strong Market Performance and Price Action
On the trading day, Tera Software Ltd exhibited a robust price rally, opening with a gap-up of 4.32% and touching an intraday high of ₹448.90, which corresponds to the upper circuit limit of 5%. The stock’s price band was set at 5%, and it reached the maximum permissible gain of ₹21.35 from its previous close. This price action reflects intense buying interest, which was evident throughout the session.
The total traded volume stood at approximately 27,996 shares (0.27996 lakh), with a turnover of ₹1.23 crore, indicating healthy liquidity for a micro-cap stock. Notably, the weighted average price was closer to the day’s low of ₹426.10, suggesting that while the stock surged, a significant portion of volume was executed at lower price points before the late-session buying pushed it to the upper circuit.
Outperformance Against Benchmarks
Tera Software Ltd outperformed its sector by 4.43% and the Sensex by 4.35% on the day, with the sector and Sensex posting gains of 0.49% and 0.64% respectively. This relative strength underscores the stock’s appeal amid a broadly positive market environment. The stock has also been on a positive trajectory, gaining 10.24% over the last two trading sessions, reflecting sustained investor confidence.
Technical Indicators and Moving Averages
From a technical perspective, the stock’s last traded price (LTP) of ₹448.90 is comfortably above its 5-day, 20-day, 50-day, and 200-day moving averages, signalling a strong short- to long-term uptrend. However, it remains below the 100-day moving average, indicating some resistance at that level which investors should monitor in coming sessions.
Investor participation has also been rising, with delivery volumes on 6 February reaching 24,250 shares, a 31.75% increase compared to the 5-day average delivery volume. This suggests that more investors are holding the stock rather than trading intraday, a positive sign for price stability and future gains.
Only 1% make it here. This Large Cap from the Gems, Jewellery And Watches sector passed our rigorous filters with flying colors. Be among the first few to spot this gem!
- - Highest rated stock selection
- - Multi-parameter screening cleared
- - Large Cap quality pick
Regulatory Freeze and Unfilled Demand
The stock’s upper circuit hit triggered an automatic regulatory freeze on further buying and selling, a mechanism designed to curb excessive volatility. This freeze indicates that demand for Tera Software Ltd shares exceeded supply, leaving many buy orders unfilled. Such a scenario often reflects strong market sentiment and can lead to further price appreciation once the freeze is lifted, provided the buying interest sustains.
Market participants should note that while hitting the upper circuit is a bullish signal, it also warrants caution as the stock may experience volatility once trading resumes fully. Investors are advised to monitor volume trends and price action closely in the next sessions.
Company Fundamentals and Market Capitalisation
Tera Software Ltd operates within the Computers - Software & Consulting industry and holds a micro-cap market capitalisation of ₹561.66 crore. Despite its relatively small size, the company has attracted considerable investor attention, as reflected in its Mojo Score of 78.0 and a current Mojo Grade of Buy, recently downgraded from Strong Buy on 5 December 2025. This adjustment suggests a slight moderation in outlook but still indicates a favourable investment stance.
The company’s market cap grade is 4, signalling moderate size and liquidity within its peer group. Investors should weigh these factors alongside technical signals when considering exposure to this stock.
Liquidity and Trading Considerations
Liquidity remains adequate for Tera Software Ltd, with the stock’s traded value representing approximately 2% of its 5-day average traded value. This level of liquidity supports trade sizes of around ₹0.02 crore without significant market impact, making it accessible for retail and institutional investors alike.
However, given the micro-cap status and recent price surge, investors should remain vigilant about potential volatility and ensure appropriate risk management strategies are in place.
Thinking about Tera Software Ltd? Our real-time Verdict report breaks down everything – from financial health and peer comparison to technical signals and fair valuation for this micro-cap stock!
- - Real-time Verdict available
- - Financial health breakdown
- - Fair valuation calculated
Outlook and Investor Takeaways
Tera Software Ltd’s recent price action and upper circuit hit underscore a strong bullish sentiment among investors, driven by solid buying pressure and improving fundamentals. The stock’s outperformance relative to its sector and the Sensex, combined with rising delivery volumes, suggests growing conviction in its growth prospects.
Nevertheless, investors should consider the stock’s micro-cap status, recent downgrade in Mojo Grade, and the technical resistance near the 100-day moving average. These factors imply that while the stock has momentum, it may face short-term consolidation or volatility.
For those looking to capitalise on the current trend, monitoring the stock’s behaviour post-regulatory freeze and assessing volume patterns will be critical. A sustained breakout above the 100-day moving average could signal further upside potential, while failure to hold gains may prompt profit-taking.
Summary
In summary, Tera Software Ltd’s upper circuit hit on 9 February 2026 highlights robust investor interest and strong buying momentum in a micro-cap software and consulting firm. The stock’s 4.99% gain, outperformance against benchmarks, and rising delivery volumes provide a positive technical and fundamental backdrop. However, investors should remain cautious of volatility risks and monitor key technical levels and regulatory developments closely.
Unlock special upgrade rates for a limited period. Start Saving Now →
