Why is Ather Energy falling/rising?

As of 06-Aug, Ather Energy Ltd's stock price is currently at 384.85, reflecting a decline of 5.6 points or 1.43%. The stock has been underperforming recently, having fallen for two consecutive days with a total return of -3.61% during this period. Today's trading saw the stock touch an intraday low of Rs 380, indicating a drop of 2.68%. Despite this, the stock has shown strong performance over the past week and month, with returns of +11.24% and +17.01%, respectively. Additionally, the stock is trading above its moving averages across various time frames, and there has been a notable increase in investor participation, with delivery volume rising by 50.09% compared to the 5-day average. However, the company is facing challenges such as operating losses and a high Debt to EBITDA ratio, which contribute to its weak long-term fundamental strength.
In the broader market context, Ather Energy's recent performance contrasts with the benchmark Sensex, which has declined by 1.15% over the past week and 3.46% over the past month. While Ather Energy has outperformed the benchmark in the short term, the overall market sentiment appears to be negative, which may be impacting investor confidence. The company's high institutional holdings at 48.08% suggest that informed investors are backing the stock, but the risks associated with its operating losses and negative EBITDA position it as a risky investment compared to historical valuations. This combination of strong short-term performance against a backdrop of fundamental weaknesses may explain the current downward pressure on the stock price.