Why is Nitco falling/rising?

As of 27-Oct, Nitco Ltd's stock price is currently at Rs 115.70, reflecting an increase of Rs 5.4, or 4.9%. The stock has shown a positive trend today, outperforming its sector by 4.89% and reversing a two-day decline. It reached an intraday high of Rs 118.15, marking a 7.12% increase. Over the past week, the stock has gained 5.09%, while its performance over the last month shows a 3.81% increase. However, despite these short-term gains, the stock has a year-to-date decline of 8.57% and a concerning long-term outlook, with a negative annual growth rate of -19.20% in operating profit over the last five years. The company has reported a significant increase in operating profit and net sales, but it also faces challenges such as a high debt-to-EBITDA ratio and a large percentage of pledged promoter shares, which could exert downward pressure on the stock.
In the broader market context, Nitco's recent performance contrasts with the benchmark Sensex, which has only increased by 0.49% over the past week. While the stock has shown resilience in the short term, its year-to-date performance significantly lags behind the Sensex's gain of 8.50%. The stock's liquidity appears adequate for trading, but the falling investor participation and the high percentage of pledged shares raise concerns about its stability. Overall, while the stock is experiencing a short-term rise, the underlying fundamentals and market conditions suggest caution for long-term investors.