Why is Nuvama Wealth falling/rising?

As of 11-Jul, Nuvama Wealth Management Ltd's stock price is currently at 7,326.50, reflecting a decline of 40.3 points or 0.55%. The stock has shown mixed performance recently, with a 1-week return of +0.87%, indicating some resilience compared to the Sensex, which fell by 1.12%. However, over the past month, the stock has decreased by 1.16%, while the Sensex remained relatively flat with a change of -0.02%. Today's trading performance indicates that the stock has outperformed its sector by 0.37%. Despite being above the 50-day, 100-day, and 200-day moving averages, it is below the 5-day and 20-day averages. Additionally, there has been a significant drop in investor participation, with delivery volume falling by 70.99% compared to the 5-day average, which may contribute to the downward pressure on the stock price.
In terms of broader market context, while Nuvama Wealth has shown strong long-term fundamentals, including a robust return on equity and consistent growth in net sales and operating profit, the stock's high valuation and the fact that 62.8% of promoter shares are pledged pose risks. This high level of pledged shares can exert additional downward pressure in a falling market. Although the stock has outperformed the market over the past year with a return of 53.86% compared to the BSE500's 0.52%, the recent decline in price may reflect investor caution amid these risks and the falling participation in trading.