Why is Steel Exchange falling/rising?

As of 01-Jul, Steel Exchange India Ltd is currently priced at 9.86, reflecting a decrease of 0.29, or 2.86%. The stock has recently underperformed its sector by 3.11% and has experienced a trend reversal after five consecutive days of gains. Despite this decline, it is trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating some underlying strength. The stock has seen a significant increase in investor participation, with delivery volume rising by 99.67% against the 5-day average. However, the company has faced challenges, including a high debt-to-EBITDA ratio and a significant proportion of promoter shares being pledged, which adds downward pressure on the stock price. Over the past year, the stock has generated a return of -33.47%, despite a notable increase in profits by 138.2%, suggesting a disconnect between market perception and financial performance.
In the broader market context, Steel Exchange's short-term performance has been notably stronger than the benchmark, with a 20.98% return over the past week compared to the Sensex's 2.00%. However, the stock's year-to-date performance remains negative at -3.52%, contrasting with the Sensex's positive return of 7.11%. This consistent underperformance against the benchmark over the last three years, coupled with weak long-term fundamental strength, indicates that while there may be short-term trading opportunities, the overall sentiment towards the stock remains cautious. The combination of high pledged shares and poor long-term growth prospects contributes to the stock's current downward trajectory.