Are you sure the problem is sunlight? If I fly it at night will the problem go away? I had the same problem flying the drone in doors and the drone hit the ceiling and fell back down on the ground.
There can be many reasons (bad regulator, bad sponge, light, PIDs).
More powerful quad might require different altitude hold PIDs, than less powerful one. You should look into tuning those PIDs. They are called Vertical Velocity PIDs and can be found in GCS -> Configure -> Stabilization -> Altitude Hold
Try decreasing Altitude Proportional from 70 to 20, and Velocity Integral from 100 to 20, or play with those values. That that resolve the issue of jumps and downs ?
For me that helped, however making those values too low will cause that quadcopter will hold altitude well if no input but drop slightly when you move it. So you need to flatten throttle curve in the middle to get smoother 50% and play with values to find the sweet spot that works for you.
Those PIDs are not the same as stabilization PIDs.