A

PROJECT REPORT
ON

“……………………………………………………………
…………………………………………………….”

Submitted to the Centurion University of Technology and

Management

PROJECT GUIDE:
……………………………………………

SUBMITTED BY:
………………………………………………………..

REGISTRATION NO: ……………………………

SUBMITTED TO:
 GUIDE CERTIFICATE

I Mr. Ms ………………………………..………………………. a student

of …………………………….1st/2nd/3rd/4th year; bearing Registration
No: …………………………….. do here by declare that the facts and finding
presented in this research paper entitled on
“…………………………………………………………………………………
…………………………………………” are true to the best of my knowledge

and belief, which is being submitted to the College.

I further declare that it has not been submitted to any other Institution or
University, not published anywhere else earlier.

Place: Vizianagaram
Date: …………………….
Full Name: ……………………………….

Signature of the student

………………………………………………,
Assistant professor,
School of management studies,
Centurion university of technology and management,
Vizianagaram, 535003,
Andhra Pradesh.
 ACKNOWLEDGEMENT

Every study requires a guidance of someone who is working in that field. Firstly,I
would like to thank Honorable Vice Chancellor Col. Prof. Dr. G.S.N Raju Sir for
providing an opportunity of preparing a Grand Project Report.

I am extremely thankful to my Project

Guide, ……………………………………………… of Centurion University of
Technology and Management for her/his precious guidance regarding the
preparation of the Project Report. Her/ his guidance has proved to be useful and
without her, the preparation of this research paper might not have been possible.

I am also thankful to the other faculty members of Centurion University

for extending their valuable support for this project.

I also extend our sincere thanks to the Respondents, who helped me during
the course of my project and for their gracious attitude.
I would like to take this opportunity to extend my warm thoughts to those who
helped me in making this project a wonderful experience.
Last but not the least; I would also like to thank of my family for their support
and encouragement.
 INDEX

S.NO. TOPICS Page

No.

1. Abstract 1

2. Introduction 2-3

3. Literature Review 4-5

4. Methods &Data 6-7

5. Analysis &Results 8-9

6. Discussion 10-11

7. Conclusion 12

8. Bibilography 13
 ABSTRACT

In Stock Market Prediction, the aim is to predict the future value of the
financial stocks of a company. The recent trend in stock market
prediction technologies is the use of machine learning which makes
predictions based on the values of current stock market indices by
training on their previous values. In today's economy, there is a
profound impact of the stock market or equity market. Prediction of
stock prices is extremely complex, chaotic, and the presence of a
dynamic environment makes it a great challenge. Behavioural finance
suggests that decision-making process of investors is to a very great
extent influenced by the emotions and sentiments in response to a
particular news. Thus, to support the decisions of the investors, we have
presented an approach combining two distinct fields for analysis of
stock exchange. The system combines price prediction based on
historical and real-time data along with news analysis. LSTM (Long
Short-Term Memory) is used for predicting. It takes the latest trading
information and analysis indicators as its input. For news analysis, only
the relevant and live news is collected from a large set of business new.
The filtered news is analyzed to predict sentiment around companies.
The results of both analyses are integrated together to get a response
which gives a recommendation for future increases.
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 INTRODUCTION

Stock market prediction is the act of trying to determine the future value
of a company stock or other financial instrument traded on an
exchange. The successful prediction of a stock's future price could yield
significant profit. Stock price analysis has been a critical area of
research and is one of the top applications of machine learning. This
tutorial will teach you how to perform stock price prediction using
machine learning and deep learning techniques. Stock market
prediction and analysis are some of the most difficult jobs to complete.
There are numerous causes for this, including market volatility and a
variety of other dependent and independent variables that influence the
value of a certain stock in the market. These variables make it
extremely difficult for any stock market expert to anticipate the rise and
fall of the market with great precision. Basically, quantitative traders
with a lot of money from stock markets buy stocks derivatives and
equities at a cheap price and later on selling them at high price. The
trend in a stock market prediction is not a new thing and yet this issue
is kept being discussed by various organizations. There are two types
to analyze stocks which investors perform before investing in a stock,
first is the fundamental analysis, in this analysis investors look at the
intrinsic value of stocks, and performance of the industry, economy,
political climate etc. to decide that whether to invest or not.
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On the other hand, the technical analysis it is an evolution of stocks by
the means of studying the statistics generated by market activity, such
as past prices and volumes.The recent trend in stock market prediction
technologies is the use of machine learning which makes predictions
based on the values of current stock market indices by training on their
previous values Stock market is the important part of economy of the
country and plays a vital role in the growth of the industry and
commerce of the country that eventually affects the economy of the
country. Both investors and industry are involved in stock market and
wants to know whether some stock will rise or fall over certain period
of time. The stock market is the primary source for any company to
raise funds for business expansions. It is based on the concept of
demand and supply. If the demand for a company's stock is higher, then
the company share price increases and if the demand for company's
stock is low then the company share price decrease. Due to involvement
of many number of industries and companies, it contain very large sets
of data from which it is difficult to extract information and analyze
their trend of work manually . Stock market analysis and prediction will
reveal the market patterns and predict the time to purchase stock. The
successful prediction of a stock's future price could yield significant
profit. This is done using large historic market data to represent varying
conditions and confirming that the time series patterns have statistically
significant predictive power for high probability of profitable trades
and high profitable returns for the competitive business investment.
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 LITERATURE REVIEW
Over the past two decades many important changes have taken
place in the environment of financial markets .The development of
powerful communication and trading facilities has enlarged the scope
of selection .Forecasting stock return is an important financial subject
that has attracted researchers attention for many years. It involves an
assumption that fundamental information publicly available in the past
has some predictive . Stock Price Prediction Method Based on
Convolutional Neural Network, 2019- Sayavong Lounnapha et al. This
paper intends for a prediction model for stock price which is centered
at the convolutional neural networks, that has exceptional capability of
learning on its own. The data set is taught and tested relating the
behaviors of both Convolutional Neural Networks and Thai stock
market The result shows that the model on grounds of Convolutional
Neural Networks can effectually recognize the altering trend in stock
market price and envisage it which provides significant allusion for
stock price forecast. The accuracy of the prediction is found to be
elevated, and it could also be promoted in the field of finance. Share
Price Prediction using Machine Learning Technique.Lately stock
market has been the talk of the town with more and more people from
academics and business showing interest in it.

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This paper mostly deals with the approach towards predicting stock
prices using RNN (Recurrent Neural Network) and LSTM (Long Short
Term Memory) on National Stock Exchange using numerous elements
such as the present-day market price as well as anonymous events. A
recommendation system models. A recommendation system along with
models constructed on RNN and LSTM methods are used in selecting
the company is also mentioned in this paper. Stock Market Prediction
Using Machine Learning Techniques, The Stock Market Prices play a
crucial role in today’ economy. Researchers have discovered that social
media platforms such as twitter and web news tend to influence the
decision making process of any individual. In this research behavioral
reflex towards web news is taken into count to reduce the gap and make
the prediction much more accurate. Precise predictions were made for
a day, a week and two weeks here after. In order to be able to extract
such relationships from the available data, data mining techniques are
new techniques that can be used to extract the knowledge from this
data. For that reason, several researchers have focused.

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 METHODS & DATA

• There are three conventional approaches for stock price

prediction:

• Technical analysis

• traditional time series forecasting

• machine learning method

Technical analysis:
• Analyzes measurable data from stock market activities,
such as stock prices, historical returns, and volume of
historical trades; i.e. quantitative information that could
identify trading signals and capture the movement
patterns of the stock market.

• Technical analysis focuses on historical data and current

data just like fundamental analysis, but it’s mainly used
for short-term trading purposes.

• Due to its short-term nature, technical analysis results are

easily influenced by news.

• Popular technical analysis methodologies include

moving average (MA), support and resistance levels, as
well as trend lines and channels.

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Traditional time series forecasting:

• Despite the volatility, stock prices aren’t just randomly

generated numbers. So, they can be analyzed as a
sequence of discrete-time data; in other words, time-
series observations taken at successive points in time
(usually on a daily basis). Time series forecasting
(predicting future values based on historical values)
applies well to stock forecasting.

• Because of the sequential nature of time-series data, we

need a way to aggregate this sequence of information.
From all the potential techniques, the most intuitive one
is MA with the ability to smooth out short-term
fluctuations. We’ll discuss more details in the next
section.

Machine learning method:

One method for predicting stock prices is using a long short-term

memory neural network (LSTM) for times series forecasting.

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 ANALYSIS &RESULT

Stock market analysis with a modern perspective Machine learning

method. information discovery at large scales in a short period.
Qualitative Research:
Newsfeeds about the stock market significantly impact the market
trend, resulting in a downward trend in lousy sentiment and an upward
trend when there are positive sentiments. As a result, media/social
networks and the share price are correlated and uncertain. Therefore,
news acts as an essential medium for analyzing how a stock would
perform on a subsequent day. Stocks mimic each other in times of
crisis, resulting in market collapse. News can give the public a view of
how the company is performing and how it might perform in the future.

Quantitative research:

Most markets now have historical information readily available. One

can use these historical values to study and analyze how a particular
stock has been performing. This data can also be studied using various
Machine Learning Algorithms to analyze the upward and downward
trends of the data to generate predictions for the future. Such algorithms
prefer learning the movement of a single stock rather than many
different stocks cumulatively as each stock moves and trades
differently.

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Additionally, these models can also perform under a variety of
situations and economic conditions.

While the exact price points from our predicted price weren’t always
close to the actual price, our model did still indicate overall trends such
as going up or down. This project teaches us the LSTMs can be
somewhat effective in times series forecasting.

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 DISCUSSION
Our model gives a real number as an output which is the predicted
closing price for T+1 day. This model can only be compared with the
actual closing price to see how accurately it measures the performance
of selected stock. Table 1. showcases the difference between the
predicted day change and actual change for 28th May 2021.

TABLE I. COMPARISON BETWEEN PREDICTED AND

ACTUAL CLOSING

Last Closing Predicted Actual

Stock Name Difference
Price Closing Price Closing Price

POWERGRID 228.3 222.27 226 -1.63%

SBIN 425.2 417.86 422 -0.97%

HINDUNILVR 2,326.40 2317.77 2,328.30 -0.45%

INFY 1,402.25 1405.86 1,407.70 -0.13%

NESTLEIND 17,746.70 17474.28 17,545.00 -0.40%

BAJAJ-AUTO 4,246.10 4186.67 4,203.00 -0.38%

HDFCBANK 1,482.65 1462.66 1,507.75 -3.04%

INFY 1,402.25 1405.86 1,407.70 -0.13%

BRITANNIA 3,414.65 3433.87 3,428.70 0.15%

TITAN 1,594.25 1594.81 1,578.20 1.04%

ITC 211.15 213.27 212.9 0.18%

ADANIPORTS 751.4 779.89 777 0.38%

QUESS 680.85 671.57 689 -2.56%

HINDZINC 328.75 329.13 326.65 0.75%

RELIANCE 1,976.10 2111.16 2,094.45 0.85%

TATASTEEL 1096.65 1113.61 1,104.00 0.88%

GRANULES 315.9 322.81 316.7 1.93%

SUNPHARMA 699.5 678.95 672.65 0.90%

ASIANPAINT 2,949.35 2964.87 2,935.70 0.99%

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 CONCLUSION

Two techniques have been utilized in this project: LSTM and

Regression, on the Yahoo finance dataset. Both the techniques have
shown an improvement in the accuracy of predictions, thereby
yielding positive results. Use of recently introduced machine
learning techniques in the prediction of stocks have yielded
promising results and thereby marked the use of them in profitable
exchange schemes. It has led to the conclusion that it is possible
to predict stock market with more accuracy and efficiency using
machine learning techniques. we are predicting the closing stock price
of any given organization, we have developed an application for
predicting close stock price using LSTM algorithm. We have used
datasets belonging to Google, Nifty50, TCS, Infosys and Reliance
Stocks and achieved above 93% accuracy for these datasets. In the
future, we can extend this application for predicting cryptocurrency
trading and also, we can add sentiment analysis for better prediction.

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 BIBILOGRAPHY

• https://www.researchgate.net/publication/331345883_Stock_
Market_Prediction_Using_Machine_Learning
• https://www.moneycontrol.com/news/photos/business/stocks
/buzzing-stocks-tcs-nazara-technologies-ril-and-other-
stocks-in-news-today-7566571.html
• https://www.simplilearn.com/tutorials/machine-learning-
tutorial/stock-price-prediction-using-machine-learning
• https://www.cse.scu.edu/~m1wang/projects/Predict_stockMa
rket_16w.pdf
• https://bvmengineering.ac.in/NAAC/Criteria1/1.3/1.3.4/18C
P808_Thesis.pdf
• https://www.sciencedirect.com/science/article/pii/S18770509
21021128

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