Dr.

Mahalingam College of Engineering and Technology

Pollachi – 642003
DEPARTMENT OF ARTIFICIAL INTELLIGENCE AND DATA
SCIENCE
Team Number:23BAD013 Class:B.Tech AI&DS
Team Member: : 727622BAD074 - S. Prienga
727622BAD054 - K. Srivaishnavi
727622BAD068 – N. Srinivasan

STOCK MARKET PREDICTION USING LSTM AND BERT

ABSTRACT
The stock market is a venue for people to buy and sell their stocks. This background
involves risk and the goal is to maximize the profit and minimize the losses to maximum
extent. And to make this possible they try to predict stock prices but, predicting the stock
prices is a hectic job and involves large amount of risk. But this can be uncovered by using
some deep learning and machine learning techniques.

The techniques include the machine learning’s BERT and deep learning’s LSTM. In
this paper we suggest a hybrid model of the LSTM (Long Short Term Memory) and BERT
(Bi-directional Encoder Representations from Transformers). BERT model is a Transformer
based model and is able to understand the contextual meaning of the data and capture
complex relationships and LSTM model is a type of RNN (Recurrent Neral Network) that is
commonly used for time series forecasting.

LSTM has the potential to capture the long-term dependencies in the data making it
suitable for analyzing and predict stock market trends. The hybrid model of BERT and
LSTM combines the strengths of both the model to improve the accuracy in stock market
price prediction. Values that evolve in the data are open, close ,high ,low and volume

Our methodology involves preprocessing historical stock price data and financial news
articles, followed by sentiment analysis using a fine-tuned BERT model (such as FinBERT).
The sentiment scores are then integrated with the LSTM network's input features to enhance
predictive performance. This hybrid approach aims to address the limitations of traditional
time-series models by incorporating real-time sentiment data, which is crucial in
understanding market movements influenced by news events.