Why is GVP Infotech falling/rising?

As of 30-Jun, GVP Infotech Ltd is currently priced at 11.30, reflecting an increase of 0.11 or 0.98%. The stock has shown strong performance in the short term, with a 1-week return of +13.57% and a 1-month return of +13.80%, significantly outperforming the Sensex, which returned +2.18% and +3.10% respectively. Today's trading activity indicates a positive trend, as the stock is trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. Additionally, there has been a notable increase in investor participation, with delivery volumes rising by 665.85% against the 5-day average. However, the company faces challenges, including operating losses and a weak ability to service its debt, which could impact long-term investor confidence.
Broader market context shows that while GVP Infotech has outperformed the benchmark in the short term, it has underperformed over the past year, with a return of -16.85% compared to the market's +3.95%. This discrepancy highlights the stock's volatility and the risks associated with its current financial health, including negative EBITDA and low profitability per unit of shareholders' funds. Despite recent gains, the company's weak fundamentals and negative results from the previous quarter suggest that investors should remain cautious about its long-term prospects.