What to do and what not to do in the stock market in 2083? Is the bull market starting?

Investor and market analyst Navaraj Dahal has shared his analysis on the recent volatility in Nepal’s secondary market, the possibility of the NEPSE index crossing the 3,200-point level, and the current market environment.

According to him, the ongoing fluctuations in the stock market are not the result of any single individual or government, but are primarily driven by investor psychology, misinformation, and short-term sentiment. He emphasized that it is incorrect to link market movements directly with political changes or government transitions, stating that in the long run, the market moves based on economic fundamentals and policy stability.

Dahal described the recent market decline as largely driven by panic selling and fear among investors. He noted that news related to anti-money laundering investigations and regulatory tightening has created uncertainty in the market. However, he clarified that there is a common misconception that shares held by individuals under investigation immediately enter the market, while in reality such assets are typically frozen, which may even reduce supply pressure.

He also criticized regulatory weaknesses, highlighting gaps in information transparency, market monitoring, and investor education. According to him, the absence of clear reasons behind market rises and falls reflects deeper structural issues in the system.

Dahal stressed that instead of focusing on measures like changing circuit breaker limits, priority should be given to improving margin trading regulations, information management, and overall regulatory frameworks. He warned that without proper interest rate regulation in margin lending, market distortions could increase. He further stated that intraday trading and short selling are not suitable for Nepal’s current market structure due to insufficient infrastructure, transparency, and regulatory capacity.

He added that a stable government and reform-oriented policies could create a positive long-term environment for the market, but short-term fluctuations should not be interpreted as direct outcomes of political events. Concluding his analysis, Dahal advised investors to control fear and greed, focus on fundamental analysis, and view the market as a platform for disciplined, long-term investing rather than a shortcut to quick wealth.

This article was originally published on https://bajarkochirfar.com. Translated with the help of AI and reviewed by our editorial team.