Yesterday, I had posted a historical circuit breaker list to generate some idea of how the immediate reaction was. And I repeat again that, history may or may not return itself because of always-changing market scenarios.

​

|5th Sept ’21|- 3.70%|
|:-|:-|
|6th Sept ’21|+ 5.74%|

Today, the market reacted to yesterday’s negative circuit breaker with a massive + 5.74% gain. But this gain was highly supported by the [news breaking of the ](https://www.onlinekhabar.com/2021/09/1009357)[finance minister’s call to the ](https://www.onlinekhabar.com/2021/09/1009357)[governor](https://www.onlinekhabar.com/2021/09/1009357) around 1 pm. For this reason, unlike previous days, the market sentiment has definitely changed now. So now, I am strongly in support of the continuation of bull market supposedly there will be some modification to the 4/12 crore rule. Still, I am in support of the rule. But, the majority of public sentiment said otherwise and hence the fall.

Anyways, we don’t know the reasons behind the previous circuit breakers and consequently the pullbacks. However, we can always put a possibility of immediate correction to negative circuit breakers and act accordingly (of course by managing the risks).

Finally, Cheers again to the bull market!

More at: r/NepalStock by PeekIntoTheMagic

3 comments
  1. NRB created 4/12 margin loan limit because bank were running out of money as liquidity has started shrinking. Even if NRB remove that limit, that won’t stop money shortage. Nepal highly being dependent to remittance & imports, I’m not sure what NRB can do at this point. Interest rate will rise in next month no matter what decision NRB revise.

    Anyway, lets see what sort of change NRB has in its mind. For me, I’ll wait & watch for now. I’m getting very bad feeling how market reacted yesterday & today.

  2. This could just be a knee-jerk reaction to the phone call ..dont think the 4-12 rule will be revised…instead NRB did make it clear that there is no limit on margin loans if you are investing the money on areas other than the stock market…

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