Next Day Stock Price Forecasting of Selected Nifty 50 in India

Abstract

Predicting the next day stock price is a serious challenge for investors and it helps them to invest with more confidence by taking risks and fluctuations into consideration. This research attempts at predicting the next day stock price of top 15 companies of Nifty 50 by market capitalization between 2011 and 2015 and to understand its price pattern. The forecasting model considered for this project under study is ARIMA model. The study also involves predicting the next 25 days stock prices of the selected companies using ARIMA model. The Findings and Recommendations obtained at the end of the research will help investors to invest in the stock market with more confidence and reduced risk. This research focusing on the next day stock price forecasting would be highly useful for the short term investors in predicting the next day stock price movement.