Why is Aavas Financiers falling/rising?

As of 01-Jul, Aavas Financiers Ltd. is currently priced at 2,046.00, reflecting a decline of 45.3 points or 2.17%. The stock has underperformed its sector by 2.04% today, marking a trend reversal after seven consecutive days of gains. It reached an intraday low of Rs 2026.35, indicating a drop of 3.11%. Despite this decline, the stock has shown positive performance over the past week, month, and year, with returns of +8.83%, +11.14%, and +10.65% respectively. The company benefits from strong long-term fundamentals, including an average Return on Equity (ROE) of 12.54% and healthy growth in net sales and operating profit, which have increased at annual rates of 21.15% and 21.47%, respectively. Additionally, high institutional holdings at 40.42% suggest confidence from sophisticated investors, which could support the stock's long-term stability.
In the broader market context, Aavas Financiers has outperformed the Sensex in the short term, with a 1-week return of +8.83% compared to the benchmark's +2.00%. However, the stock's recent decline today contrasts with its overall positive trajectory, as it has been trading above its moving averages across various time frames. The rising investor participation, indicated by a significant increase in delivery volume, suggests that while the stock is experiencing a temporary setback, there remains a strong interest in its long-term potential. This combination of factors indicates that while the stock is currently facing downward pressure, its fundamentals and market interest may provide a foundation for recovery.