Why is Tera Software falling/rising?

As of 11-Jul, Tera Software Ltd's stock is currently priced at Rs 310.45, reflecting a decrease of Rs 8.7 or 2.73%. The stock reached a new 52-week and all-time high of Rs 325.9 earlier in the day but has since fallen after three consecutive days of gains. Despite this decline, Tera Software has shown strong performance over various periods, with a year-to-date increase of 64.69% and a remarkable 288.79% rise over the past year. However, the stock underperformed its sector by 0.59% today, and there has been a notable drop in investor participation, with delivery volume decreasing by 13.06% compared to the five-day average. Positive financial results, including a 71.57% growth in PAT and a 30.96% increase in net sales over the last six months, indicate strong fundamentals, but the recent price movement suggests some profit-taking after reaching new highs.
In the broader market context, Tera Software's recent performance contrasts with the Sensex, which has seen a slight decline of 1.12% over the past week. While Tera Software has outperformed the benchmark significantly over the last year and three years, the current short-term dip may reflect broader market trends, particularly in the IT sector, which has fallen by 2.17%. The stock's ability to maintain trading above its moving averages indicates underlying strength, but the recent price action suggests that investors may be reassessing their positions following a period of rapid gains.