Why is Rain Industries falling/rising?

As of 29-Jul, Rain Industries Ltd is experiencing a price increase, currently at 156.60, reflecting a rise of 3.5 or 2.29%. The stock has gained after two consecutive days of decline, reaching an intraday high of Rs 157.8. It is trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a positive trend. However, there has been a notable decrease in investor participation, with delivery volume falling by 55.19% compared to the 5-day average. Despite a year-to-date return of -7.34%, the stock is trading at a discount compared to its peers, and profits have increased by 53.2% over the past year, which may attract institutional investors who have increased their stake by 0.82% in the last quarter.
In the broader market context, Rain Industries has outperformed the benchmark Sensex in the short term, with a 1-week return of +2.52% compared to the Sensex's -1.03%. This short-term outperformance may contribute to the stock's recent price rise. However, it is important to note that the stock has consistently underperformed against the benchmark over the last three years, with a significant decline in operating profits and a high debt-to-EBITDA ratio, which raises concerns about long-term fundamental strength. While the recent increase in institutional investment may provide some support, the overall weak long-term outlook could temper enthusiasm among retail investors.