A Machine Learning Model for

Stock Market Prediction

Internship Seminar Presentation

Coordinator: Project Guide: Head of The Department:

Mr. Sandeepa G S Dr. B.N.Veerappa
Mr. Santosh Kumar M
Assistant Professor Assistant Professor
Presented by:

Hemgirish K C (4GM20CS042)
Keerthana G U (4GM20CS048)
Lekhana K S (4GM20CS050)
Mahesh Gowda M G (4GM20CS055)
CONTENTS
• About the Company
• Introduction
• Objectives
• Literature Survey
• Problem Statement
• Requirements
• Methodology
• Implementation
• Results
• Conclusion
ABOUT THE COMPANY
• Name : AiRobosoft Products & Services LLP

• Founder : Syed Asad Ahmed

• AiRobosoft is an Software, Robotics combined EV Manufacturing

Company with HQ and development center.

• Technology used : Artificial Intelligence, Cloud computing, Machine

learning, Embedded Systems and Internet of Things.

• Products and Services : Automative, Machine Learning, Data Science,

Embedded System, Internet of things, E-Learning, Industrial
Automation.
 INTRODUCTION

• Data pre-processing is a technique that is used to convert the raw data into a clean
data set.
• By using this technique transform the raw data into an understanding format.
• LSTM(LONG SHORT-TERM MEMORY) is an artificial recurrent neural
network(RNN) architecture. LSTM networks are well suited to classifying,
processing and making predictions based on time series data.
• Artificial neural network(ANN) are computing system inspired by biological neural
networks that constitute animal brains.
 OBJECTIVES

• The main objective to reduce the investment cost unnecessarily.

• In those days, people used to invest money of the product and the outcome
may not be as expected. So this leads to major drop in the company, whole
share will drop down.

• To overcome this, we predict the future stock market price and then invest
accordingly ,which reduces the cost, time and more over enhances the
growth of the company.
 LITERATURE SURVEY

Title of the Paper Author Name Method Efficiency

Automated Stock Jure Leskovec and Neural Networks 89%

trading using Keith Silats
Machine Learning

Bankruptcy R. Wilson and R. Neural Networks 91%

Prediction Using Sharda (specifically used
Neural Networks for bankruptcy
prediction)
Title of the Paper Author Name Method Efficiency

Application of Neelama Budhani, Neural Network 93%

Neural Network in Dr. C.K. Jha,
Analysis of Stock Sandeep K.
Market Prediction Budhani

Stock Prediction B. Manjula, Neural Networks 97%

using Neural S.S.V.N. Sharma,
Network" R. Lakshman Naik,
G. Shruthi
PROBLEM STATEMENT

"Create a machine learning model

for stock market prediction, utilizing
historical data and financial
indicators. Aim to forecast future
stock prices accurately, providing
valuable insights for investors and
traders."
 REQUIREMENTS

SOFTWARE HARDWARE
REQUIREMENTS REQUIREMENTS
• Anaconda navigator as
applications wrapper • Processor i3 and
hub. above.
• Spyder as GUI • Ram 4gb and above.
interface for coding.
 STOCK EXCHANGE IN INDIA

There are 22 stock exchanges in India. But two of them are biggest.

BSE(BOMBAY STOCK EXCHANGE)-The asia’s first stock exchange and

world’s tenth largest stock exchange

NSE(NATIONAL STOCK EXCHANGE)- The first exchange in the

country to provide modern fully automated screen based electronic trading
system.
 BOMBAY STOCK EXCHANGE
IN INDIA

• Location :Mumbai
• Index :Sensex(SENSITIVE INDEX)
• Group of 30 stocks
• Members :852
• Date of launch :03 jan 1986
• No of listings :5439
• Market cap :Rs 1,50,184 billion
NATIONAL STOCK EXCHANGE
• Location :Mumbai
• Index :Nifty(NATIONAL STOCK EXCHANGE FIFTY)
• Consists of group of 50 stocks
• Date of launch :April 1994
• No of Listings :2000
 ARTIFICIAL NEURAL NETWORK

• ANN are the computing systems inspired

by the biological neural networks that
constitute animal brains.

• The neural network itself is not an

algorithm, but rather a framework for
many different machine
learning algorithms to work together and
process complex data inputs.
ADVANTAGES DISADVANTAGES

• Adaptive learning • Greater computational burden,

• Self-organization proneness to overfitting, and the
• Real time operating empirical nature of model
development which is called as
black box nature.
• Computationally Expensive
RECURRENT NEURAL NETWORK

A recurrent neural network (RNN) is a class of artificial neural

network where connections between nodes form a directed graph along a
temporal sequence. This allows it to exhibit temporal dynamic behavior.

Limitations of RNNs:-
Recurrent Neural Networks work just fine when we are dealing with
short-term dependencies.
The Problem will be like:

RNNs turn out to be quite effective. It need not remember what was said
before this, or what was its meaning, all they need to know is that in most
cases the sky is blue.

Something that was said long before, cannot be recalled when making
predictions in the present. The reason behind this is the problem
of Vanishing Gradient.
LONG SHORT-TERM MEMORY

• Long Short-Term memory is one of the most successful RNNs

architectures.

• LSTM introduces the memory cell, a unit of computation that replaces

traditional artificial neurons in the hidden layer of the network.

• Hidden layers are the networks are able to effectively associate

memories and input remote in time, hence suit to grasp the structure of
data dynamically over time with high prediction capacity.
METHODOLOGY OF LSTM

Stage 1: Collection of Raw data

Raw Data: In this stage, the historical stock data is

collected from the Google stock price and this historical
data is used for the prediction of future stock prices.
Stage 2: Data Preprocessing
Stage 3:
In this stage, only the features which are to be fed to the neural
network are choosen.

Stage 4:
After pre-processing is done, we spilt the dataset in to trainset
and test set using minmaxscaler.

(xi–min(x))/(max(x)–min(x))
• It essentially shrinks the range such that the range is now
between 0 and 1 (or -1 to 1 if there are negative values).

• This scaler works better for cases in which the standard

scaler might not work so well. If the distribution is not
Gaussian or the standard deviation is very small, the min-
max scaler works better.
LIBRARIES USED:
• pandas as pd
• numpy as np
• matplotlib
• matplotlib.pyplot as plt
• seaborn as sns
• matplotlib.style.use('ggplot')
• sklearn.preprocessing import MinMaxScaler
 RESULT

Fig: Plotting all Fig: Plot of Original dataset, Training

indicators in one plot Predictions and Testing Predictions
 CONCLUSION

By doing data pre-processing we can convert raw data into clean,

understandable data and standardized data. It will help for share
Holders to predict the future. We can conclude that using this
proposed method and technique we can easily and accurately predict
the future price of the market.
 REFERENCES

1. Jure Leskovec, TA: Keith Sillats HW 4

2. R.Wilson and R.Sharda , “Bankruptcy prediction using neural
networks” , Decision Support Systems.
3. Neelama Budhani, Dr.C.K.Jha, Sandeep K. Budhani “Application Of
Neural Network In Analysis Of Stock Market Prediction”,
International Journal Of Computer science And Engineering
Technology.
4. B. Manjula, S.S.V.N. Sharma, R. Lakshman Naik, G. Shruthi, Stock
Prediction using Neural Network, International journal of advantage
engineering sciences and technologies.