Why is KIOCL falling/rising?

As of 24-Jul, KIOCL Ltd's stock price is currently at Rs 361.80, reflecting an increase of 1.65 (0.46%). The stock has shown a strong performance recently, gaining 24.87% over the last four days and outperforming its sector by 1.42%. It has also been trading above its moving averages across various time frames, indicating positive momentum. However, despite this short-term rise, the company has been facing significant challenges, including consecutive operating losses and a negative return on equity of 5.96%. The company has reported negative results for the last five quarters, with net sales and profit after tax both declining by 53.67%. This weak fundamental strength may contribute to investor caution, as evidenced by the minimal stake held by domestic mutual funds.
In the broader market context, KIOCL's recent performance contrasts sharply with the benchmark, as it has gained 22.98% over the past week while the Sensex has remained nearly flat at -0.09%. However, over a longer time frame, KIOCL has underperformed the market, with a year-to-date return of -9.52% compared to the Sensex's gain of 5.18%. This underperformance highlights the stock's volatility and the risks associated with its current valuation, particularly given its negative EBITDA and declining profitability over the past year. While the stock is experiencing a short-term rise, the underlying financial struggles may limit its potential for sustained growth.