Hi Aniket, first welcome to PC

I am not an expert but from what I know yours seems more like depression and not psychosis. Chronic sleep deprivation is still a serious issue that we have to pay attention though because it can lead to another illness both physical and mental. What your psychiatrists told you, I said listen to them. Just make sure that you mention all things that you mention in your posts as well. Are you on medications for your sleep issue now? I think that is the most important things right now, fix your sleep quality, quantity, and patterns.