Stock Market Analysis and Prediction

Download Document/Synopsis
Our aim is to create software that analyzes previous stock data of certain companies, with help of certain parameters that affect stock value. We are going to implement these values in data mining algorithms. This will also help us to determine the values that particular stock will have in near future. We will determine the Month’s High and Low with help of data mining algorithms.

Scope of the project

3.1 Application of Analysis of stocks:

Stock Market
Analysis of stocks using data mining will be useful for new investors to invest in stock market based on the various factors considered by the software.
Stock market includes daily activities like sensex calculation, exchange of shares. The exchange provides an efficient and transparent market for trading in equity, debt instruments and derivatives.
Our software will be analyzing sensex based on company’s stock value. The stock values of company depend on many factors, some of them are:
1> Demand and Supply:
Demand and Supply of shares of a company is a major reason price change in stocks. When Demand Increase and Supply is less, price rises. and vice versa.
2> Corporate results: This will be regarding to the profits or progress of the company over a span of time say 3 months.
3> Popularity: Main Strength in hands of share buyer. Popularity of a company can effect on buyers. Like if any good news of a company, may result in rise of stock price. And a bad news may break dreams.
The stock value depends on other factors as well, but we are taking into consideration only these main factors.

3.2 Prominent features of the Project:

A. Analyzing stock data.
We need to provide data of a particular company, and its Monthly Sales / Profit report with Months High and Low points of its Stock.
B. Analyzing the factors.
We have to obtain the data in the same period for the following factors.
1. Demand and Supply: We will obtain by the previous data entered.
2. Corporate results: Companies declare their performance results and profit at the end of each quarter.
3. Popularity: If any news about a company is about to come and is it bad or good.
We have to analyze the variations in the stock value of the companies with respect to these factors using some data mining algorithms.

Functional Requirements

1.User Interface: The user is required to select which company is he interested in amongst the various companies that have been provided. with SQL: As communication with user is performed in C# and data required for processing is in a Database, a connectivity has to be implemented between the Database and C# application