Why is NACL Industries falling/rising?

As of 26-Jun, NACL Industries Ltd is experiencing a price increase, currently at Rs 197.95, reflecting a rise of 9.4 points or 4.99%. The stock has shown strong performance recently, gaining 11.99% over the past week and outperforming its sector by 5.3% today. It has consistently risen over the last five days and is trading above all key moving averages. However, despite these positive short-term movements, the company faces significant challenges, including operating losses and a high Debt to EBITDA ratio, which indicate weak long-term fundamental strength. The company has also reported negative results for the last two quarters, further complicating its financial outlook.
In the broader market context, NACL Industries has significantly outperformed the benchmark Sensex, with a year-to-date return of 196.60% compared to the Sensex's 7.19%. This strong performance over both the short and long term highlights the stock's ability to attract investor interest despite its underlying financial issues. However, the falling investor participation, as evidenced by a 64.89% drop in delivery volume, raises concerns about the sustainability of this upward price movement. The lack of domestic mutual fund investment may also suggest a cautious sentiment among institutional investors regarding the stock's valuation and business prospects.