Why is HFCL falling/rising?

As of 04-Jul, HFCL Ltd's stock price is currently at 84.62, reflecting a slight increase of 0.12 (0.14%). The stock has shown a trend reversal today, gaining after five consecutive days of decline. However, it is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a generally bearish trend. Over the past week, HFCL has underperformed the market, with a return of -2.67% compared to the Sensex's -0.74%. The company has faced significant challenges, including a -32.36% return over the past year and a -46.2% decline in profits, which has contributed to a perception of poor long-term growth. Additionally, the high percentage of pledged promoter shares (49.72%) adds downward pressure on the stock price, particularly in a falling market.
In the broader market context, HFCL's recent performance contrasts sharply with the Sensex, which has gained 3.01% over the past month while HFCL has declined by 5.82%. This underperformance is further highlighted by the company's negative results over the last two quarters and a significant drop in net sales of -39.62%. Despite a strong ability to service debt, as indicated by a low Debt to EBITDA ratio, the overall sentiment remains negative due to the company's declining operating profit and the increase in pledged shares. Consequently, while there may be short-term gains, the long-term outlook appears bleak, leading to a cautious stance among investors.