Why is Gravity (India) falling/rising?

As of 17-Jul, Gravity (India) Ltd's stock price is currently at 6.29, reflecting an increase of 0.19 or 3.11%. The stock has shown a trend reversal, gaining after six consecutive days of decline. It has outperformed its sector by 2.83% today and is trading above all its moving averages, indicating a positive short-term momentum. However, despite a strong one-year return of 36.74%, the company faces significant challenges, including operating losses and a weak long-term fundamental strength, with net sales declining at an annual rate of -40.99%. Additionally, the promoters have reduced their stake by -0.84%, which may signal diminishing confidence in the company's future prospects.
In the broader market context, Gravity (India) has outperformed the benchmark Sensex in the short term, with a weekly return of +1.45% compared to the Sensex's -1.12%. While the stock has shown resilience in the face of broader market challenges, the declining investor participation, evidenced by a 98% drop in delivery volume, raises concerns about liquidity and investor confidence. The company's negative EBITDA and poor ability to service debt further complicate its outlook, suggesting that while the stock is currently rising, underlying financial weaknesses could pose risks moving forward.