Stock Market Prediction of NIFTY 50 Index Applying Machine Learning Techniques

Abstract

ABSTRACT The stock market is viewed as an unpredictable, volatile, and competitive market. The prediction of stock prices has been a challenging task for many years. In fact, many analysts are highly interested in the research area of stock price prediction. Various forecasting methods can be categorized into linear and non-linear algorithms. In this paper, we offer an overview of the use of deep learning networks for the Indian National Stock Exchange time series analysis and prediction. The networks used are Recurrent Neural Network, Long Short-Term Memory Network, and Convolutional Neural Network to predict future trends of NIFTY 50 stock prices. Comparative analysis is done using different evaluation metrics. These analysis led us to identify the impact of feature selection process and hyper-parameter optimization on prediction quality and metrics used in the prediction of stock market performance and prices. The performance of the models was quantified using MSE metric. These errors in the LSTM model are found to be lower compared to RNN and CNN models.