Why is Tera Software falling/rising?

As of 02-Jul, Tera Software Ltd's stock price is currently at Rs 300.50, reflecting a decrease of Rs 4.95 or 1.62%. The stock reached a new 52-week high of Rs 319 earlier in the day but has since fallen after six consecutive days of gains. Despite this decline, Tera Software has shown impressive performance over various periods, with a 1-year return of 273.29% and a 3-year return of 746.48%, significantly outperforming the BSE500 index. However, the stock underperformed its sector today by 1.71%, and there has been a notable drop in investor participation, with delivery volume falling by 88.97% against the 5-day average.
In the broader market context, Tera Software's recent short-term performance of +9.25% over the past week contrasts sharply with the Sensex's modest gain of +0.79%. This indicates that while the stock has been on an upward trajectory, the recent pullback may be a natural correction after a strong rally. The liquidity of the stock remains adequate for trading, but the significant drop in delivery volume suggests a potential decrease in investor confidence. Overall, while Tera Software has demonstrated strong fundamentals and consistent returns, the recent price movement reflects a combination of profit-taking after a rally and reduced trading activity.