Sentiment Analysis for Predicting

Stock Price Movement

Group B1: Bhavesh Ahuja, Aadesh Jain, Ruchika Kheria, Aadya Magotra,
Vijeet Prasad, Radhika Thakkar

Mentor: Professor Sanjay Deshmukh

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 Roadmap
 Introduction
 Problem Definition
 Aim/Goal
 Scope of Project
 Feasibility Study
 Project Timeline
 Approach
 Architecture
 Implementation
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 Introduction
o Stock Prediction – Forecast price of an exchange listed company

o Factors affecting stock prices - company performance, data

availability, noise, political events, investors views on the markets

o Existing models – Historical Prices, Economic Metrics etc.

o Existing methods for stock prediction – Technical Analysis,

Fundamental Analysis

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 Problem Definition
o Stock specific social media posts with no factual basis are
driving stock sentiments

o Leading to increased volatility and uncertainty in market

o No existing way of immediate validation of posts results in

spontaneous action taken by investors

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 Aim/Goal
o Analyse whether social media sentiments significantly impact
the stock market

o Analyse impact of Financial and Bloomberg indicators

o Developing an integrated model by combining most effective

aspects of all the approaches

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 Scope of Project
o Conduct sentiment analysis and technical analysis based on
DJIA (Dow Jones Industrial Average) and S&P 500 components

o Sentiment analysis – Reddit and Twitter content

o Technical analysis – Bloomberg indicators

o Analyse stocks of 5-10 large market capitalization companies

o Stock data considered from 2010-2018

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 Feasibility Study

Technical Economic
• Software development • No extra cost of development
• In-built libraries available • Understand impact of new and emotions of
• Python language for NLP & ML algorithms public on stock price
• Hedge risks while investing in stocks

Legal Schedule
• DJIA indices and Reddit content freely • Timeframe of 4 months for project
available for sentiment analysis implementation
• Adheres to all norms and regulations • Detailed timeline explained further

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 Approach
o Plan to develop 3 models:

 Baseline Model – includes historical stock price indicators

to predict price movements
 Sentiment Model – integrates sentiment scores from
various social media platforms into Baseline Model
 Bloomberg Indicators – Based on pre-existing indicators
defined by Bloomberg and followed by many professionals

o Build a GUI to help user understand process flow

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 Architecture

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 Project Timeline

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 Implementation
o Web Scraping techniques and available APIs to gather news
events and stock-specific data

o Machine Learning Algorithms on Baseline Model

o Sentiment Driven Analysis on extracted social media datasets

o Machine Learning Algorithms on combined datasets

o Statistical Analysis on Bloomberg Indicators

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 Thank You

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