GOVERNMENT ENGINEERING COLLEGE TALAKAL

COMPUTER SCIENCE DEPARTMENT

Project Phase - 1 Synopsis

Topic: Stock Market Prediction

ABRAR 2LG20CS001
ABHISHEK 2LG20CS002
ANANT 2LG20CS006
FAIZAN 2LG20CS028
 ABSTRACT
Stock price prediction has been a subject of interest for investors, traders, and financial analysts for many
years. Accurate forecasting of stock prices is crucial for making informed investment decisions, reducing
risks, and maximizing returns. In recent years, machine learning techniques have gained prominence in
the field of stock price prediction due to their ability to analyze vast amounts of data and uncover hidden
patterns.

Stock price prediction is one of the most widely studied problem, attracting researchers from many fields.
The volatile nature of the stock market makes it really difficult to apply simple time-series or regression
techniques. Financial institutions and active traders have created various proprietary models to beat the
market for 2 themselves or their clients, but rarely did anyone achieve consistently higher than the
average returns on investment.

This project aims to develop a robust stock price prediction model using various machine learning
algorithms and historical stock market data. The primary objectives are to create a model that can
effectively forecast stock prices, evaluate its performance, and provide insights into the factors driving
stock market movements.

The project will start by collecting historical stock price data, which will include features such as opening
price, closing price, high and low prices, trading volume, and other relevant financial indicators. This
dataset will be preprocessed to handle missing values, outliers, and ensure that it is suitable for training
machine learning models.

Several machine learning algorithms, including but not limited to linear regression, decision trees,
random forests, and deep neural networks, will be implemented and evaluated. Feature selection and
engineering techniques will be employed to improve the model's performance, and various evaluation
metrics such as mean squared error (MSE) and mean absolute error (MAE) will be used to assess model
accuracy.
 INTRODUCTION
The stock market is a dynamic and complex system where millions of investors trade shares of thousands
of companies, making it an exciting yet challenging arena for both seasoned investors and newcomers.
Stock price prediction is a critical aspect of financial analysis and investment decision-making, as it can
provide valuable insights into future market trends and potential investment opportunities.

This project aims to develop a stock price prediction model using various data sources, statistical
techniques, and machine learning algorithms. The primary objective is to forecast the future prices of
specific stocks or stock market indices, allowing investors to make more informed decisions and
potentially maximize their returns.

The significance of this project lies in its potential to enhance investment decision-making processes and
increase the efficiency and effectiveness of stock market participation. By leveraging the power of data
and machine learning, investors can make more informed choices, manage their risks, and potentially
improve their financial outcomes.

In an era of data-driven decision-making, this stock price prediction project is a timely and valuable
contribution to the field of finance, catering to a broad range of investors, from individual traders to
institutional investors.

Throughout this project, we will explore various techniques, algorithms, and datasets to develop a robust
and accurate stock price prediction model, aiming to empower investors with the tools they need to
navigate the complex world of stock trading.

Stock price prediction is a classic and important problem. With a successful model for stock prediction,
we can gain insight about market behavior over time, spotting trends that would otherwise not have been
noticed. With the increasingly computational power of the computer, machine learning will be an efficient
method to solve this problem. Thus, our motivation is to design a public service incorporating historical
data and users predictions to make a stronger model that will benefit everyone.
 REQUREMENT SPECIFICATION

Hardware Requirements

Processor : Intel core i5

RAM : 8 GB

System type : 64 Bit operating system

Software Requirements

Operating system : Windows 10 or above

Programming Language: Python

IDE : Anaconda 1

METHODOLOGY

1. Data Preprocessing: The entries are present in the dataset. The null values are removed using df =
df.dropna() where df is the data frame. The categorical attributes (Date,High,Low,Close,Adj value) are
converted into numeric using Label Encoder. The date attribute is splitted into new attributes like total
which can be used as feature for the model.

2. Feature selection: Features selection is done which can be used to build the model. The attributes used for
feature selection are Date,Price,Adj close,Forecast X coordinate , Y coordinate, Latitude , Longitude,
Hour and month,

3. Building and Training Model: After feature selection location and month attribute are used for training.
The dataset is divided into pair of xtrain ,ytrain and xtest, y test. The algorithms model is imported form
skleran. Building model is done using model. Fit (xtrain, ytrain). This phase would involve supervised
classification methods like linear regression, Ensemble classifiers (like Adaboost, Random Forest

Classifiers), etc.

CONCLUSION

By measuring the accuracy of the Linear Regression algorithms, we found that the most suitable
algorithm for predicting the market price of a stock based on various data points from the historical data.
The algorithm will be a great asset for brokers and investors for investing money in the stock market since
it is trained on a huge collection of historical data and has been chosen after being tested on a sample
data. The project demonstrates the machine learning model to predict the stock value with more accuracy
as compared to previously implemented machine learning models.