International Research Journal of Engineering and Technology (IRJET)
e-ISSN: 2395-0056
Volume: 10 Issue: 08 | Aug 2023
p-ISSN: 2395-0072
www.irjet.net
DATA SCIENCE APPROACH TO STOCK MARKET ANALYSIS Sneh Patil1, Yash Bharat Jadhav2, Neel Gude3, Anish Shivram Gawde4, Mohammed Naif5, Aditi Bombe6 ---------------------------------------------------------------------***---------------------------------------------------------------------
Abstract - Stock analysis is a technique that aids buyers and
sellers for investors and traders. Investors and traders attempt to obtain an advantage in the markets by making educated decisions by researching and assessing both historical and recent data. We only care about the information that is pertinent to us in the information-overflowing world. The material can be categorised according to a number of disciplines, including engineering, the arts, science, history, sports, geography, and economics. In these circumstances, it is crucial for us to focus on the information that is pertinent to us.[16] The information that is provided is poorly organised and only provides information on the current situation, particularly when it comes to the sector of finance. On the stock market, virtually all significant economic transactions take place at a dynamic rate known as the stock value based on market equilibrium. A precise forecast of this stock trend in advance could result in enormous rewards.
firm we are analysing as well as significant financial news regarding the company, can be used to analyse the stock market. [14] This leads us to news analysis, where we must parse through all the pertinent company news and papers to obtain the necessary data so that we can decide whether or not to invest. The "Theory of Demand and Supply" underlies the functioning of the stock market [12, 18]. It asserts that supply and demand are always negatively correlated.[18] As a result, as demand rises, purchasers seize control of the stock market, which then turns bullish. On the other side, as soon as supply enters the market, sellers seize control and stock prices begin to decline sharply. The "Head and Shoulder Theory" [18], which states that the highest price of any stock is considered the head and the next peak high is called the shoulder, can also be used to analyse the stock market. The majority of the indicators we'll encounter in this study have a statistical basis. As a result, each technical indicator's design step involves some assumptions.
Key Words: Data Science, Stock Market, Algorithms, Trade, Data Analysis
2. UNDERSTANDING STOCK MARKET Although practically anything can now be purchased online, each commodity often has its own market. For instance, individuals travel to farms and the outskirts of cities to acquire Christmas trees, go to the neighbourhood timber market to buy wood and other supplies for house renovations, and shop at Walmart for their weekly groceries. Such a focused marketplace acts as a venue for various buyers and sellers to connect, communicate, and conduct business. One can be sure that the pricing is fair because there are so many market participants. For instance, if there is only one Christmas tree vendor in the entire city, he will be free to charge whatever he wants because there will be nowhere else for customers to go. If there are many tree sellers in a single marketplace, they will have to compete with one another to draw customers to purchase their goods. It will be a fair market with transparent pricing because purchasers will have a wide range of options. Even when buying online, customers compare prices from several merchants on the same app or across different apps or websites to find the greatest offers, which compels the different online vendors to provide them the best deal. A stock market is a comparable venue set aside for the trading of various securities in a regulated, secure, and controllable setting. The stock market ensures fair pricing practises and transparency in transactions by bringing together hundreds of thousands of market players who want to purchase and sell shares of various companies. Modern computer-aided stock markets operate electronically, which makes them more and more advanced. Earlier stock markets used to
1.INTRODUCTION The stock market is quite complicated and prone to volatility, and it is influenced by a number of factors. Due to the market's unpredictability, investors can benefit or lose money. Stock analysis is a tool used by traders and investors to assist them decide what to purchase and sell. Investors and traders strive to obtain an advantage in the markets by making educated decisions by researching and analysing both historical and recent data. A precise forecast of this stock trend in advance could result in enormous rewards. [14, 21] Two strategies are used in this paper to achieve the prediction. Utilising different technical indicators is one of them. These technical indicators are used to predict upcoming shifts in stock trend. [21] The technical indicators used in this stock market forecasting tool will substantially support the predictability. The second strategy, which is based on the Hidden Markov Model, is more probabilistic. This model has been broad and is more suited for dynamic systems. used when solving pattern recognition issues. [22, 23] It is focused on statistical techniques and has a robust capacity for handling new data. Based on historical datasets that complement current stock price behaviour, this model interpolates the two datasets using suitable neighbouring price elements.[16, 15] As a result, a prediction is made regarding the variable of interest's stock trend tomorrow. [22] Fundamental analysis, which considers the financial performance of the specific
© 2023, IRJET
|
Impact Factor value: 8.226
|
ISO 9001:2008 Certified Journal
|
Page 316