Joshna karri

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Nifty Stock Price
Prediction using Deep
Learning and Machine
Learning
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Table of Contents :
 Introduction

 Objective and Motivation

 System Design Implemetation

 Tools and Technology Used

 Implemetation

 Testing

 Limitations and Future Scope

 The concept of stocks or shares is widely recognized, often considered a long-term investment strategy. Buying a stock
means purchasing a small ownership stake in a company, with the expectation that its value will increase over time,
providing future financial security, particularly during retirement. Stocks are commonly viewed as assets that grow, driven
by market dynamics and influenced by various unpredictable factors.

 The stock market's nature is inherently volatile, making predictions challenging. While some methods aim to estimate stock
behavior through trends and historical data, these are inherently limited and lack complete reliability. Market experts or
agents attempt to forecast trends and provide advice for a fee, but the accuracy remains uncertain due to the ever-
fluctuating nature of markets.

 India’s stock market, particularly the National Stock Exchange (NSE), is significant on a global scale, ranking 12th in net
worth and listing 1,659 companies. However, stock trading contributes only 4% to India’s GDP—a stark contrast to
developed nations like the USA, where stock market trading accounts for approximately 55% of GDP. India's economy,
largely based on agriculture and services like software development, could benefit more substantially if stock trading was
more effectively leveraged.

 Given these challenges, machine learning offers promising advantages over traditional stock prediction methods.
Conventional methods fall short in accurately forecasting due to the complexity and multitude of influencing factors.
Machine learning models, on the other hand, can analyze large volumes of data, detect patterns, and provide more
nuanced predictions, potentially enhancing the reliability of stock market analysis. In essence, harnessing advanced
technologies like machine learning could be key to optimizing India’s stock market potential and integrating it more deeply
into the country's economic framework.
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Objective and Motivation

 Based on the fundamental analysis predict the price/behaviour of the stock in

 Based on the technical analysis predict the price/behaviour of the stock in short-
term using deep learning techniques.

 Intelligence fascinates mankind and having one in machine and integrating on the
same is the hot key of research. All the learning system from the past are limited
and are simplest in nature where learning of the simple algorithm for a
computational mean is not enough which can even be done by human brain itself.
The main motto of learning was limited and learning model was not efficient.

 As many have invested their time and effort in the world of trade, In the past years
various strategies and plans had been derived and deployed, the topic is still a
point of research where people are coming up with ideas to solve.
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System Design Implemetation

Introduction

System Design aims to create a technical solution that meets the functional requirements of a system. During the analysis
phase, the focus is on identifying the tasks that need to be accomplished, while the design phase focuses on determining
how to achieve those tasks. Initially, high-level decisions are made in system design, followed by increasingly detailed
planning. It establishes the system’s foundational structure and approach to addressing the problem.

Overview

This system design document outlines the overall design and purpose of the application implemented for this project. It
explains the reasoning behind major components of the system. The system analysis section offers a comprehensive
overview of the Software Requirements Specification (SRS) document, including its purpose, scope, definitions,
references, and an outline of the project. The goal of this project is to build a machine learning-based Nifty price prediction
model to assist in accident prediction, ultimately serving as a prototype for government use to implement preventative
measures. This project was developed under the guidance of college professors.

Purpose

The primary aim of this system analysis document is to provide a thorough overview of the software product’s goals and
parameters. The Nifty price prediction system is intended to reduce fatality rates by providing an easy-to-use tool that can
identify fraud rates. The system leverages machine learning algorithms to classify and predict fraud, displaying results with
high accuracy.
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Tools and Technology Used
Flask is a lightweight Python web framework that enables developers to build web applications with simplicity and flexibility. Known
for its minimalism, Flask includes only essential components for web development, making it easy to learn and suitable for scalable
applications. Its routing system allows developers to map URL paths to Python functions, supporting RESTful API creation. Flask’s
templating engine, Jinja2, enables dynamic HTML generation, while built-in session management aids in handling user-specific
data across requests.

Python, the core programming language for developing recommendation systems, is favored for its readability, simplicity, and
broad ecosystem of libraries, especially for machine learning and web development. Its extensive libraries, such as TensorFlow,
Keras, and scikit-learn, support sophisticated machine learning tasks, while Django and Flask provide robust web development
tools. Python’s intuitive syntax and versatile libraries make it ideal for building and deploying machine learning models for
recommendation systems.

Jupyter Notebook is an essential tool for prototyping and testing machine learning models. Its interactive, cell-based structure
supports iterative development and facilitates data exploration. Jupyter also allows inline visualizations, enabling real-time data
analysis and model evaluation. This flexible environment fosters collaboration and accelerates the development and refinement of
machine learning models.

Libraries like TensorFlow and Keras are crucial for recommendation systems, providing the foundation for building and training
complex neural network models. Keras, with its high-level API, makes deep learning accessible, allowing quick model prototyping.
NumPy supports numerical computations, while Pandas is valuable for data manipulation and feature engineering, offering efficient
handling of structured data. Scikit-learn provides versatile tools for various machine learning tasks, simplifying the implementation
of pipelines for recommendation system models. Together, these libraries create a powerful toolkit for developing, training, and
deploying recommendation systems in Python.
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Implemetation

This project uses Python, a versatile programming language that supports multiple paradigms, including object-oriented,
procedural, and functional programming. Known for its simplicity and readability, Python is also dynamically typed and features
automatic memory management through garbage collection. Its "batteries included" philosophy provides a robust standard
library, making it suitable for tasks involving machine learning and data analysis.

Machine learning (ML), a subset of artificial intelligence (AI), allows computers to learn and make predictions based on data
without explicit programming for each task. By developing computer programs that adapt when exposed to new data, ML
enables systems to perform tasks such as image recognition and recommendation generation. In this project, machine learning
is applied to build models that analyze and make predictions based on trained data.

The ML process involves training a computer on a dataset so it can predict properties of new data. For instance, to create an
image recognition model for identifying cats, a computer can be trained using thousands of labeled images of cats and non-
cats. After training, the model can predict whether a new image shows a cat based on its learned patterns.

This process of training and prediction uses specialized algorithms. A common algorithm is K-Nearest-Neighbor (KNN)
classification, where the model identifies the "k" closest data points to a given test data point. By examining the nearest
neighbors, KNN predicts the class of the test point based on the majority class among its neighbors. Such algorithms are
foundational in machine learning and provide the basis for implementing systems that can classify or make decisions with new,
unseen data.

This project demonstrates Python’s ability to handle machine learning tasks and explores a simple yet powerful ML algorithm,
KNN, for effective data-based prediction and classification.
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TESTING

Testing is the process of running a system with the intent of identifying errors to improve system
reliability. It helps in detecting deviations from design and faults, aiming to minimize future issues.
Testing confirms that the system meets user requirements and ensures the product’s integrity. Effective
testing requires planning and thoroughness; a partially tested system is almost as risky as an untested
one. Comprehensive testing, including client feedback and system modification, is crucial for success.

Testing objectives include finding errors by running tests that challenge system functionality. The goal is
to identify errors not previously noticed. System testing occurs during the implementation phase,
ensuring the system meets user needs before live deployment. A series of tests precedes user
acceptance testing, verifying that the system functions accurately and efficiently.

Testing methods include White Box Testing, where code errors are identified during generation, and
Black Box Testing, focusing on functionality to identify missing or incorrect functions, interface issues,
and data structure errors. Unit Testing checks each module independently, ensuring it delivers expected
outputs, while Integration Testing examines how modules work together to uncover interface errors.

Output Testing assesses whether the system produces the required outputs in the desired format. User
Acceptance Testing (UAT) ensures the system meets user needs, involving feedback and adjustments
during development. Finally, Validation Testing verifies that the integrated system functions as expected.
Validation is successful if the software meets user expectations and performs as required.
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Limitations and Future Scope

 Since our project runs on different APIs these APIs are not much stable

 • Project has only 50 company to choose

 • Predicted and Actual price has significant error

Future scope

 • Building more robust model for better accuracy

 • More number of companies

 • Better interactivity

 • Custom data input