A Project Report On

“Stock Market Price Prediction”

Submitted By
Gaurav Kishor Badgujar

Guided by
Miss. Kirtee Agrawal

Submitted to
Mahatma Gandhi Shikshan Mandalache
Dadasaheb Dr. Suresh G. Patil College,
Chopda.425107

Affiliated to

K. B. C. North Maharashtra University, Jalgaon.

Academic Year 2024-2025

1|Page
Stock Market Price Prediction
Prediction
 CERTIFICATE
This is to certify that Gaurav Kishor Badgujar

students of Msc 2nd (SEM-III) has completed

their Project report on “Stock Market Price

Prediction” under the guidance of Miss. Kirtee

Agrawal during the academic year 2024-25.

Date:
Place: Chopda

Project Guide Head of Department

Miss. Kirtee Agrawal Mrs. Arati B. Patil

Internal Examiner External Examiner

2|Page
Stock Market Price Prediction
Prediction
 DECLARATION
I am Gaurav Kishor Badgujar the student of Masters of

Computer Science (Msc) course in Dadasaheb Dr. Suresh

G. Patil Collage, Chopda. I declared that the present report

titled “Stock Market Price Prediction” based on real

project Report and its genuine work.

Date: -
Place: -
Gaurav Kishor Badgujar

3|Page
Stock Market Price Prediction
Prediction
 ACKNOWLEDGEMENT
I take this opportunity to express a great pleasure in
submitting this report on Stock Market Price Prediction” for
Masters of Computer Science.
In completion of this project work Report, we are grateful to
Head of Department Asst. Prof. Mrs. Arati B. Patil for she’s
timely kind cooperation and providing required facilities.
I am thankful to our guide Miss. Kirtee Agrawal for their
valuable guidance, kind of suggestion, constant encouragement
and excellent co-operation and valuable helps.
I also like to pay humble gratitude to our parents for providing
moral support for completion of this project Report on.

Gaurav Kishor Badgujar

4|Page
Stock Market Price Prediction
Prediction
 TABLE OF
CONTENTS

CHAPTER Contents Page No.

Certificates 02
Declaration 03
Acknowledgement 04

Abstraction 06
Introduction 08

1.1 Problem Statement 10

1.2 Objective 12
1
1.3 Need of Project 13
1.4 Purpose and Scope 13
Related Concept 16
2.1 Stock Market Fundamentals 16
2.2 Time Series Forecasting 16
2
2.3 Feature Engineering 17
2.4 Model Evaluation and Validation 18
2.5 Overfitting and Underfitting 18
3 Literature Review 19

4 Methodology 20

Software and hardware requirement 21

5 3.1 Hardware requirement 21

3.2 Software requirement 22

6 25
Implementation
7 Pseudo Code 48
Conclusion 54
References 58

5|Page
Stock Market Price Prediction
Prediction
Abstract

The stock market is a complex and dynamic system influenced by various

factors such as economic indicators, company performance, and market
sentiment. Predicting stock market prices is a challenging task due to the
inherent volatility and uncertainty of financial markets. In this project, we
explore the application of machine learning algorithms to predict stock prices,
aiming to develop a model that can assist in forecasting market trends and
inform investment decisions.
The project focuses on the development of predictive models using various
machine learning techniques, including linear regression, decision trees, random
forests, support vector machines (SVM), and deep learning models like neural
networks. Historical stock data, including open, close, high, low prices, and
volume, are used as features to train the models. Additionally, technical
indicators like moving averages, Relative Strength Index (RSI), and Bollinger
Bands are incorporated to improve model accuracy.
The data preprocessing steps involve cleaning and normalizing the data to
remove noise and outliers, ensuring that the models are trained on high-quality
input. Feature engineering plays a crucial role in enhancing predictive
performance by identifying patterns and relationships between different
variables.
To evaluate the performance of the models, we use various metrics such as
Mean Absolute Error (MAE), Root Mean Squared Error (RMSE), and R-
squared. Cross-validation techniques are employed to assess the models'
generalizability and robustness to unseen data.
The stock market is an intricate and dynamic financial ecosystem where
predicting stock prices remains one of the most challenging yet compelling
endeavors. This abstract explores the methodologies, technologies, and

6|Page
Stock Market Price Prediction
Prediction
challenges involved in forecasting stock prices, a field of immense relevance for
investors, financial analysts, and researchers. Accurate predictions can help
mitigate risks, enhance portfolio performance, and guide investment decisions.
Traditional prediction models relied heavily on technical analysis, fundamental
analysis, and market sentiment, which often required extensive manual
evaluation. However, the advent of advanced technologies like machine
learning (ML), deep learning (DL), and natural language processing (NLP) has
revolutionized predictive capabilities by offering automated, data-driven, and
scalable solutions.
Machine learning algorithms such as regression models, decision trees, and
support vector machines (SVM) analyze historical data and discern patterns to
project future stock movements. Meanwhile, deep learning approaches,
including recurrent neural networks (RNN) and long short-term memory
networks (LSTM), excel in handling sequential data and predicting time series
trends. Sentiment analysis, leveraging NLP, gauges public opinion and news
sentiment, which are key drivers of market behavior. These innovations are
often combined to enhance prediction accuracy, such as integrating technical
indicators with social media sentiment analysis.
Despite technological advancements, stock price prediction remains complex
due to market volatility, macroeconomic factors, geopolitical events, and the
presence of random noise in the data. Furthermore, biases in data, overfitting in
models, and computational challenges pose significant obstacles. Addressing
these limitations requires robust preprocessing techniques, real-time data
integration, and the development of interpretable models. Ethical
considerations, including data privacy and the impact of algorithmic trading on
market stability, are also critical.

7|Page
Stock Market Price Prediction
Prediction
 Chapter 1
Introduction

Introduction
The stock market is one of the most complex systems globally, with prices
constantly fluctuating due to a wide array of factors, including economic news,
corporate earnings reports, geopolitical events, and investor sentiment. Investors
and financial institutions have long sought ways to predict future stock prices in
order to maximize returns and minimize risks. However, stock price prediction
remains a difficult challenge due to the inherent volatility, noise, and
unpredictability of financial markets.
Traditionally, stock market price prediction has relied on fundamental analysis,
which involves analyzing financial statements, earnings reports, and
macroeconomic data, as well as technical analysis, which focuses on historical
price movements and trading volumes. However, these methods often struggle
to predict price movements accurately, especially in the short term. As a result,
there has been growing interest in applying machine learning techniques to
predict stock prices and market trends.
Machine learning (ML) offers a promising approach to stock market prediction
by leveraging historical data and complex patterns that are difficult for
traditional models to capture. ML algorithms can identify correlations and
trends in large datasets, making them more adept at predicting future price
movements than human-driven models. By training models on historical stock
data, including daily opening and closing prices, trading volumes, and technical
indicators such as moving averages, Relative Strength Index (RSI), and
Bollinger Bands, machine learning algorithms can uncover hidden patterns and
relationships in the data.
Furthermore, recent advances in deep learning and neural networks have shown
promise in improving prediction accuracy by mimicking human decision-

8|Page
Stock Market Price Prediction
Prediction
making processes and learning from large, high-dimensional datasets. These
methods can capture intricate nonlinear relationships and make predictions
based on past price movements, news sentiment, and even social media trends.
The aim of this project is to explore the potential of machine learning
techniques to predict stock market prices. By employing various ML models
such as linear regression, decision trees, support vector machines (SVM),
random forests, and deep learning approaches, this project seeks to develop a
robust system that can forecast stock prices and help investors make informed
decisions. The project also aims to evaluate the predictive performance of
different models using several accuracy metrics and analyze the effectiveness of
technical indicators and other features in improving prediction results.
In addition to stock price prediction, this project investigates the challenges and
limitations of machine learning in financial markets, including overfitting,
model interpretability, and the impact of external factors such as news events
and market sentiment. Ultimately, the goal is to determine the feasibility of
using machine learning as a tool for making more informed and reliable
predictions in the unpredictable and volatile environment of the stock market.
while absolute accuracy in stock price prediction may remain elusive, ongoing
innovations in AI and data analytics are significantly enhancing the ability to
forecast trends and guide strategic decision-making. This field continues to
evolve, underscoring the interplay between financial expertise and
computational intelligence. Future research should focus on hybrid models that
integrate multiple data sources, explainable AI to interpret predictions, and
adaptive algorithms to handle dynamic market conditions. This synergy of
technology and finance holds great promise for transforming stock market
analysis into a more precise and informed science.

9|Page
Stock Market Price Prediction
Prediction
1.1 Problem statement
he stock market is a highly dynamic environment characterized by complex
interactions between various factors, such as economic conditions, company
performance, investor behavior, and external events. Predicting stock prices
accurately remains one of the most challenging tasks in finance due to the
inherent uncertainty and volatility present in the market. Despite the availability
of vast amounts of historical data, current methods still struggle to provide
reliable and consistent predictions over both short and long-term horizons.
Traditional stock market prediction methods, such as technical analysis and
fundamental analysis, rely on expert knowledge and heuristic rules to forecast
price movements. However, these approaches are limited by their inability to
adapt to new patterns and often fail to capture complex, nonlinear relationships
within the data. Additionally, the reliance on human intuition can introduce
biases and errors in predictions.
In recent years, machine learning (ML) techniques have gained significant
attention for their potential to address these limitations. Machine learning
algorithms can automatically learn patterns from historical data and provide
predictions based on empirical evidence, rather than relying on predefined rules.
However, the application of machine learning to stock market prediction faces
several key challenges:
1. High Volatility and Noise: Stock prices are subject to unpredictable
fluctuations, often driven by factors outside of historical trends. This
noise can make it difficult for machine learning models to identify clear
patterns and relationships, leading to inaccurate predictions.
2. Data Complexity and Dimensionality: The stock market is influenced
by a wide range of variables, including technical indicators, economic
data, market sentiment, and global events. Incorporating all relevant
factors into a prediction model introduces significant complexity and the
10 | P a g e
Stock Market Price Prediction
Prediction
 risk of overfitting, where a model learns the noise rather than the
underlying patterns.

3. Feature Selection and Engineering: Identifying the right features, such

as technical indicators, trading volumes, or macroeconomic data, is
crucial to improving model accuracy. However, the selection and
transformation of features that effectively represent the underlying market
conditions remain a significant challenge in building effective predictive
models.
4. Model Evaluation: Evaluating the performance of machine learning
models in stock market prediction is difficult, as the model's effectiveness
can vary across different market conditions (e.g., bullish vs. bearish
trends). Metrics like accuracy, RMSE (Root Mean Squared Error), and
MAE (Mean Absolute Error) may not fully capture the models'
robustness and ability to generalize to unseen data.
5. Overfitting and Generalization: Stock markets are inherently non-
stationary, meaning past patterns might not necessarily hold in the future.
A model that performs well on historical data may fail to generalize to
new, unseen data, thus leading to unreliable predictions in real-world
scenarios.
The primary objective of this project is to develop and evaluate machine
learning models that can predict stock prices based on historical data and
technical indicators, while addressing the challenges of noise, data complexity,
and model generalization. We aim to explore various algorithms, including
regression models, decision trees, random forests, support vector machines
(SVM), and deep learning techniques, to determine which approach provides
the most accurate and reliable predictions for stock prices.

11 | P a g e
Stock Market Price Prediction
Prediction
1.2 Objective
1. Develop Predictive Models Using Machine Learning Algorithms:
• To explore different machine learning algorithms, such as linear
regression, decision trees, random forests, support vector machines
(SVM), and deep learning models like neural networks, to determine the
most effective approach for stock market prediction.
2. Incorporate Technical Indicators and Feature Engineering:
• To integrate various technical indicators, such as moving averages (MA),
Relative Strength Index (RSI), Bollinger Bands, and MACD, as features
in the prediction models.
5. Address Data Challenges and Preprocessing:
• To preprocess historical stock data to remove noise, handle missing
values, and normalize the dataset for efficient model training.
• To handle challenges posed by noisy and volatile data, which may
otherwise lead to poor model performance.
4 .Evaluate Model Performance and Accuracy:
• To evaluate the performance of the machine learning models using
appropriate metrics such as Mean Absolute Error (MAE), Root Mean
Squared Error (RMSE), and R-squared, and identify the most accurate
model.
6. Handle Model Overfitting and Ensure Generalization:
• To apply techniques like regularization, hyperparameter tuning, and
cross-validation to prevent overfitting and ensure the models generalize
well to new, unseen data.
7. Analyze the Impact of External Factors:
• To explore the potential influence of external factors like macroeconomic
data, news sentiment, and social media trends on stock price movements
and incorporate them into the models (if applicable).

12 | P a g e
Stock Market Price Prediction
Prediction
1.3Need of Project
Stock market prediction has always been a complex and critical problem for
investors, traders, and financial analysts. Accurate forecasting of stock prices
can potentially lead to significant profits and improved investment strategies.
However, due to the unpredictable nature of the market, traditional methods
often fail to provide reliable predictions, especially in short-term market
movements. This has created a pressing need for more advanced techniques that
can better capture the complexities and dynamics of stock price behavior.
1. High Complexity and Volatility of Stock Markets:
• Dynamic Nature: The stock market is affected by a multitude of factors
such as company performance, economic indicators, geopolitical events,
and investor sentiment. Traditional models struggle to account for all
these dynamic influences, often leading to inaccurate predictions.
• Volatility: Stock prices exhibit high volatility, and even small changes in
market conditions can lead to significant price fluctuations. Machine
learning models, with their ability to process vast amounts of data, can
potentially capture underlying patterns that are difficult for traditional
models to identify.

1.3 Purpose and Scope

The primary purpose of this project is to explore the application of machine
learning techniques for predicting stock market prices. Stock price prediction is
one of the most challenging yet critical tasks in financial markets, as it can
significantly impact investment decisions and trading strategies. By leveraging
machine learning, the project aims to:
1. Enhance Prediction Accuracy: Develop predictive models that can provide
more accurate forecasts of future stock prices by identifying patterns and trends
within historical data that traditional methods often overlook.
2. Leverage Data-Driven Decision Making: Replace subjective human
13 | P a g e
Stock Market Price Prediction
Prediction
judgments and biases with objective, data-driven models that can predict
market movements based on large volumes of financial data and technical
indicators.
3. Automate and Optimize Trading Strategies: Facilitate the development of
algorithmic trading systems that can make real-time decisions without human
intervention, improving trading efficiency and potentially leading to higher
returns.

1. Data Sources:
• Historical Stock Data: The project will use publicly available stock data,
which includes daily stock prices (open, close, high, low), trading
volume, and other relevant market information for a specific set of stocks
over a chosen period (e.g., past 5-10 years).
• Technical Indicators: Common technical indicators like Moving
Averages (MA), Relative Strength Index (RSI), Bollinger Bands, and
MACD will be used as features in the models to capture patterns that
could indicate future price movements.
2. Machine Learning Models:
• The project will explore a range of machine learning techniques,
including but not limited to:
o Supervised Learning: Regression models such as Linear
Regression, Support Vector Machines (SVM), and Random Forests
for predicting continuous stock prices.
o Deep Learning: Neural networks, including feedforward networks
and more advanced techniques like Long Short-Term Memory
(LSTM) networks, which are well-suited for time series
forecasting.
3. Feature Engineering:
• Data preprocessing will be an essential part of this project, where raw
stock data will be cleaned, normalized, and transformed into features that

14 | P a g e
Stock Market Price Prediction
Prediction
 machine learning models can use effectively.
• Key features will include stock prices, volume, technical indicators, and
other relevant metrics that can help models predict future price trends.
4. Model Optimization and Fine-tuning:
• The project will involve selecting the best model based on performance
and optimizing its parameters using techniques such as grid search,
random search, or hyperparameter tuning to achieve the most accurate
predictions.

15 | P a g e
Stock Market Price Prediction
Prediction
 Chapter 2
Related Concept

2.1 Stock Market Fundamentals

• Stock Price: The price at which a particular stock or share is bought and
sold in the market. It fluctuates due to factors such as company
performance, economic conditions, and investor sentiment.
• Technical Analysis: A method of evaluating securities by analyzing
historical price and volume patterns. It uses indicators such as moving
averages, Bollinger Bands, and the Relative Strength Index (RSI) to
predict future price movements.
• Fundamental Analysis: Involves analyzing a company's financial health,
including its earnings, revenue, profit margins, and macroeconomic
conditions. It’s used to determine the intrinsic value of a stock.
2.2 Time Series Forecasting
• Time Series Data: In stock market prediction, time series data refers to a
sequence of stock prices or indicators observed at successive time
intervals (e.g., daily, weekly). Time series forecasting is the process of
using historical data to predict future values.
• Stationarity: A fundamental concept in time series analysis, referring to
the property of a time series where its statistical properties (mean,
variance, etc.) remain constant over time. Many machine learning
algorithms require time series data to be stationary before they can make
accurate predictions.
• Autoregressive Models: These models use previous values in the time
series to predict future values. Examples include AutoRegressive
Integrated Moving Average (ARIMA) models, which are widely used in
time series forecasting.

16 | P a g e
Stock Market Price Prediction
Prediction
 o Long Short-Term Memory (LSTM): A type of RNN specifically
designed to address the vanishing gradient problem in long

sequences. LSTMs are effective for learning patterns over longer

periods, making them ideal for stock price prediction.
2.3 Feature Engineering
• Technical Indicators: These are mathematical calculations based on
historical stock data and are used to forecast future price movements.
Common indicators include:
o Moving Averages (MA): Simple moving average (SMA) and
exponential moving average (EMA) help identify trends by
smoothing out price fluctuations.
o Relative Strength Index (RSI): A momentum oscillator that
measures the speed and change of price movements. It ranges from
0 to 100 and is typically used to identify overbought or oversold
conditions.
o Bollinger Bands: A volatility indicator that shows the range in
which a stock price is expected to move. It uses a moving average
and two standard deviations to form upper and lower bands.
o Moving Average Convergence Divergence (MACD): A trend-
following momentum indicator that shows the relationship between
two moving averages of a stock’s price.
• Data Normalization: To ensure that features with different ranges (e.g.,
price vs. volume) can be compared effectively by machine learning
models, normalization techniques such as Min-Max scaling and Z-score
standardization are applied.
• Lag Features: In time series forecasting, lag features represent the value
of a feature (like stock price) at previous time steps (e.g., the stock price 1
day ago). These features are crucial for learning temporal dependencies.

17 | P a g e
Stock Market Price Prediction
Prediction
 2.4. Model Evaluation and Validation

• Train-Test Split: To evaluate the generalization ability of the model, the

dataset is typically split into training and testing sets. The model is
trained on the training data and tested on unseen testing data to assess its
performance.
• Cross-Validation: A technique where the data is split into multiple
subsets (folds), and the model is trained and validated on different
combinations of these subsets. This helps mitigate the risk of overfitting
and ensures the model’s robustness.
• Performance Metrics:
o Mean Absolute Error (MAE): A metric that measures the
average magnitude of the errors in a set of predictions, without
considering their direction.
o Root Mean Squared Error (RMSE): A metric that gives the
square root of the average of the squared differences between
predicted and actual values. RMSE penalizes large errors more
than MAE.
o R-Squared (R²): A statistical measure that represents the
proportion of variance in the dependent variable (stock price) that
is predictable from the independent variables (technical indicators).
2.5. Overfitting and Underfitting
• Overfitting: Occurs when a model learns the details and noise in the
training data to such an extent that it negatively impacts the performance
of the model on new, unseen data. Regularization techniques and cross-
validation are used to mitigate overfitting.
• Underfitting: Happens when the model is too simple to capture the
underlying patterns in the data, resulting in poor performance on both
training and test datasets. This can be mitigated by increasing model
complexity or adding more features.
18 | P a g e
Stock Market Price Prediction
Prediction
 Chapter 3

Literature Review

.1 Literature Review
1. Stock Market Characteristics
• Volatility and Non-Linearity: Stock prices are highly volatile and non-linear,
influenced by market sentiment, global events, and company-specific factors.
• Efficient Market Hypothesis (EMH): The hypothesis states that stock prices
reflect all available information, making them unpredictable to an extent. This
serves as a baseline to challenge with ML.
2. Machine Learning Techniques
• Traditional Methods:
o Linear Regression and Moving Averages for trend analysis.

o Statistical methods like ARIMA (AutoRegressive Integrated Moving

Average) for time series modeling.
• Modern Machine Learning Approaches:
o Supervised Learning:

▪ Algorithms: Random Forest, Support Vector Machines (SVM),

Gradient Boosting (e.g., XGBoost).
▪ Data: Historical stock prices, volume, technical indicators.

o Deep Learning:

▪ Recurrent Neural Networks (RNNs) and Long Short-Term Memory

(LSTM) models for sequential data analysis.
▪ Convolutional Neural Networks (CNNs) for feature extraction from
stock price charts.
o Reinforcement Learning:

▪ RL for portfolio optimization and trading strategies.

3. Related Work
• Studies combining technical indicators (e.g., RSI, MACD) with ML algorithms.
• Integration of sentiment analysis from news and social media for predictive
modeling.
• Hybrid models combining statistical techniques and deep learning for higher
accuracy.
4. Challenges
• Overfitting due to limited training data or high model complexity.
19 | P a g e
Stock Market Price Prediction
Prediction
 Chapter 4
Methodology
1. Data Collection

• Sources:
o Stock market APIs (e.g., Yahoo Finance, Alpha Vantage).
o Historical price data, trading volume, and corporate financials.
o News and social media sentiment (e.g., Twitter, Reddit).
• Types of Data:
o Time-series data (prices, volume).
o Technical indicators (moving averages, Bollinger Bands).
o Sentiment analysis scores.

2. Data Preprocessing

• Handle missing values using interpolation or forward filling.

• Normalize or scale data to improve ML performance.
• Feature engineering:
o Create lag features.
o Compute technical indicators.
• Split data into training, validation, and test sets.

3. Model Selection

• Choose models based on the complexity of the task:

o Basic predictions: Linear Regression, Decision Trees.
o Sequential predictions: LSTM or GRU (Gated Recurrent Unit).
o Hybrid models: Combine ML algorithms with ARIMA.

4. Training and Validation

• Use cross-validation to ensure model robustness.

• Evaluate models using metrics like Mean Absolute Error (MAE), Mean
Squared Error (MSE), and R-squared.

5. Evaluation and Optimization

• Backtesting: Simulate the model’s predictions against historical data to assess

its real-world viability.
• Optimize hyperparameters using techniques like Grid Search or Bayesian
Optimization.
• Feature importance analysis to refine predictors.

6. Deployment

20 | P a g e
Stock Market Price Prediction
Prediction
 • Use frameworks like Flask or FastAPI for deploying predictive models as
RESTful APIs.
• Visualize results using dashboards built with tools like Dash or Tableau.

7. Incorporating Feedback

• Regularly retrain the model with the latest data.

• Incorporate user feedback or changing market dynamics.

Tools and Frameworks

• Data Collection: Pandas, NumPy, yFinance API, Alpha Vantage API.

• Modeling: Scikit-learn, TensorFlow, PyTorch.
• Visualization: Matplotlib, Seaborn, Plotly.
• Deployment: Flask, FastAPI, Docker.

21 | P a g e
Stock Market Price Prediction
Prediction
 Chapter 5
Hardware and Software requirement

3.1 Hardware requirement:

1. Processor:
• Minimum: Dual-Core Processor (e.g., Intel Core i3 or AMD
equivalent)
• Recommended: Quad-Core Processor (e.g., Intel Core i5/i7 or AMD

Ryzen 5/7)
2. RAM:
1. Minimum: 4 GB
2. Recommended: 8 GB or higher (to handle large datasets and
faster processing)
3. Storage:
1. Minimum: 20 GB free disk space
2. Recommended: SSD with at least 50 GB free space (for faster
data processing and model training)
4. Display:
A monitor with standard resolution (1920 x 1080) for visualizing
results and graphs.
5. Input Devices:
Keyboard and mouse for data input and system navigation

22 | P a g e
Stock Market Price Prediction
Prediction
PROCESSOR INTEL i5 OR HIGHER

RAM 512 MB & ABOVE

HARD DISK DRIVE 50 GB FREE SPACE OR ABOVE

PRINTER INK JET PRINTER

3.2 Software requirement

Operating System : Windows (64 bit) :
1. Windows 10 or later
2. Linux (Ubuntu 20.04 or later)
3. macOS (Big Sur or later)

Programming language : Python

Libraries :

• Data Processing:
1. Pandas
2. Numpy
• Feature Extraction:
1. Urllib
2. re (regular expressions)
• Machine Learning:
1. scikit-learn
2. xgboost (optional)
3. TensorFlow / Keras:

23 | P a g e
Stock Market Price Prediction
Prediction
 • Visualization
1. Matplotlib
2. Seaborn
• Integrated Development Environment (IDE):
1. Jupyter Notebook (recommended for ease of visualization)
2. PyCharm or Visual Studio Code (for structured development)
• Dataset:
1. HDFC, Asian Paint etc (e.g., from Kaggle or PhishTank).
• Deployment Tools:
1. Flask or FastAPI for creating a web interface for the detection
system.

24 | P a g e
Stock Market Price Prediction
Prediction
 Chapter 6
Implementation

Implementation
Step 1: Data Collection
1. Source Stock Data:
o You will need historical stock data, which includes features like
daily stock prices (open, close, high, low), trading volume, and any
other relevant financial data.
o Data can be sourced from various platforms such as:
▪ Yahoo Finance API
▪ Alpha Vantage API
▪ Quandl API
▪ Google Finance (via web scraping)
2. Example (using Yahoo Finance API with Python's yfinance library):
import yfinance as yf
# Download stock data for a specific company, e.g., 'AAPL' (Apple) from
Yahoo Finance
data = yf.download("AAPL", start="2010-01-01", end="2024-01-01")
print(data.head())

Step 2: Data Preprocessing

1. Handle Missing Data:
o It’s important to handle any missing values in the stock data. Missing values
can be filled using forward fill, backward fill, or other imputation
techniques.
2. Feature Engineering:
o Technical Indicators: Add important features like moving averages (SMA,
EMA), RSI, Bollinger Bands, etc.

25 | P a g e
Stock Market Price Prediction
Prediction
 3. Normalization:
o Normalize the data to bring all features to a common scale, which helps in
improving model performance.
4. Split Data into Training and Testing Sets:
o Typically, 70%-80% of the data is used for training, and the rest is kept for
testing and evaluation.

Step 3: Model Development

1. Choosing a Machine Learning Model:
o Linear Regression: Good for simple prediction tasks based on
past prices.
o Random Forests: A robust model for predicting stock prices.
o Deep Learning: Use Recurrent Neural Networks (RNNs) or Long
Short-Term Memory Networks (LSTMs) for more complex, time-
series-based prediction tasks.

Step 4: Model Training and Evaluation

1. Train the Model:
o Fit the model on the training data.
2. Make Predictions:
o After training, use the model to make predictions on the test set.
3. Evaluate the Model: Evaluate the performance using metrics like Mean
Absolute Error (MAE), Root Mean Squared Error (RMSE), and R-
squared.

Step 5: Model Deployment and Prediction

1. Deploy the Model:
o Once the model is trained and evaluated, it can be deployed to make
real-time predictions using live stock market data (from APIs or
web scraping).
26 | P a g e
Stock Market Price Prediction
Prediction
 2. Predict Future Prices:
o For a specific day, using the latest data, the model can predict the
next stock price.
latest_data = [[50.3, 200.5, 70.2]] # Example features for a new prediction
future_price = model.predict(latest_data)
print(f"Predicted Stock Price: {future_price}")

Step 6: Visualization
1. Plotting Stock Prices:
o Visualize actual and predicted stock prices to understand the
model's performance.

# Step 1: Download stock data

data = yf.download("AAPL", start="2010-01-01", end="2024-01-01")

# Step 2: Feature Engineering (Simple Moving Average)

data['SMA_50'] = data['Close'].rolling(window=50).mean()
data['SMA_200'] = data['Close'].rolling(window=200).mean()
data = data.dropna() # Drop rows with missing values

# Step 3: Define Features and Target Variable

X = data[['SMA_50', 'SMA_200']]
y = data['Close']

# Step 4: Split Data into Training and Testing Sets

X_train, X_test, y_train, y_test = train_test_split(X, y, test_size=0.2,
shuffle=False)

# Step 5: Train the Linear Regression Model

model = LinearRegression()
27 | P a g e
Stock Market Price Prediction
Prediction
model.fit(X_train, y_train)

# Step 6: Make Predictions

y_pred = model.predict(X_test)

# Step 7: Evaluate Model

mae = mean_absolute_error(y_test, y_pred)
print(f"Mean Absolute Error: {mae}")

# Step 8: Visualize Predictions

import matplotlib.pyplot as plt
plt.plot(y_test.index, y_test, label='Actual Prices')
plt.plot(y_test.index, y_pred, label='Predicted Prices', color='red')
plt.legend()
plt.show()

28 | P a g e
Stock Market Price Prediction
Prediction
Code of Model:-
#**************** IMPORT PACKAGES ********************
from flask import Flask, render_template, request, flash, redirect, url_for
from alpha_vantage.timeseries import TimeSeries
import pandas as pd
import numpy as np
from statsmodels.tsa.arima.model import ARIMA
from sklearn.metrics import mean_squared_error
import matplotlib.pyplot as plt
plt.style.use('ggplot')
import math, random
from datetime import datetime
import datetime as dt
import yfinance as yf
import tweepy
import preprocessor as p
import re
from sklearn.linear_model import LinearRegression
from textblob import TextBlob
import constants as ct
from Tweet import Tweet
import nltk
nltk.download('punkt')

# Ignore Warnings
import warnings
warnings.filterwarnings("ignore")
import os
os.environ['TF_CPP_MIN_LOG_LEVEL'] = '3'

29 | P a g e
Stock Market Price Prediction
Prediction
#***************** FLASK *****************************
app = Flask( name )

#To control caching so as to save and retrieve plot figs on client side
@app.after_request
def add_header(response):
response.headers['Pragma'] = 'no-cache'
response.headers['Cache-Control'] = 'no-cache, no-store, must-revalidate'
response.headers['Expires'] = '0'
return response

@app.route('/')
def index():
return render_template('index.html')

@app.route('/insertintotable',methods = ['POST'])
def insertintotable():
nm = request.form['nm']

#**************** FUNCTIONS TO FETCH DATA

***************************
def get_historical(quote):
end = datetime.now()
start = datetime(end.year-2,end.month,end.day)
data = yf.download(quote, start=start, end=end)
df = pd.DataFrame(data=data)
df.to_csv(''+quote+'.csv')
if(df.empty):
ts = TimeSeries(key='N6A6QT6IBFJOPJ70',output_format='pandas')
data, meta_data = ts.get_daily_adjusted(symbol='NSE:'+quote,
30 | P a g e
Stock Market Price Prediction
Prediction
outputsize='full')
#Format df
#Last 2 yrs rows => 502, in ascending order => ::-1
data=data.head(503).iloc[::-1]
data=data.reset_index()
#Keep Required cols only
df=pd.DataFrame()
df['Date']=data['date']
df['Open']=data['1. open']
df['High']=data['2. high']
df['Low']=data['3. low']
df['Close']=data['4. close']
df['Adj Close']=data['5. adjusted close']
df['Volume']=data['6. volume']
df.to_csv(''+quote+'.csv',index=False)
return

#******************** ARIMA SECTION ********************

def ARIMA_ALGO(df):
uniqueVals = df["Code"].unique()
len(uniqueVals)
df=df.set_index("Code")
#for daily basis
def parser(x):
return datetime.strptime(x, '%Y-%m-%d')
def arima_model(train, test):
history = [x for x in train]
predictions = list()
for t in range(len(test)):
model = ARIMA(history, order=(6,1 ,0))
31 | P a g e
Stock Market Price Prediction
Prediction
 model_fit = model.fit()
output = model_fit.forecast()
yhat = output[0]
predictions.append(yhat)
obs = test[t]
history.append(obs)
return predictions
for company in uniqueVals[:10]:
data=(df.loc[company,:]).reset_index()
data['Price'] = data['Close']
Quantity_date = data[['Price','Date']]
Quantity_date.index = Quantity_date['Date'].map(lambda x: parser(x))
Quantity_date['Price'] = Quantity_date['Price'].map(lambda x: float(x))
Quantity_date = Quantity_date.fillna(Quantity_date.bfill())
Quantity_date = Quantity_date.drop(['Date'],axis =1)
fig = plt.figure(figsize=(7.2,4.8),dpi=65)
plt.plot(Quantity_date)
plt.savefig('static/Trends.png')
plt.close(fig)

quantity = Quantity_date.values
size = int(len(quantity) * 0.80)
train, test = quantity[0:size], quantity[size:len(quantity)]
#fit in model
predictions = arima_model(train, test)

#plot graph
fig = plt.figure(figsize=(7.2,4.8),dpi=65)
plt.plot(test,label='Actual Price')
plt.plot(predictions,label='Predicted Price')
32 | P a g e
Stock Market Price Prediction
Prediction
 plt.legend(loc=4)
plt.savefig('static/ARIMA.png')
plt.close(fig)
print()
print("#####################################################
#########################")
arima_pred=predictions[-2]
print("Tomorrow's",quote," Closing Price Prediction by
ARIMA:",arima_pred)
#rmse calculation
error_arima = math.sqrt(mean_squared_error(test, predictions))
print("ARIMA RMSE:",error_arima)
print("#####################################################
#########################")
return arima_pred, error_arima

#************* LSTM SECTION **********************

def LSTM_ALGO(df):
#Split data into training set and test set
dataset_train=df.iloc[0:int(0.8*len(df)),:]
dataset_test=df.iloc[int(0.8*len(df)):,:]
############# NOTE #################
#TO PREDICT STOCK PRICES OF NEXT N DAYS, STORE
PREVIOUS N DAYS IN MEMORY WHILE TRAINING
# HERE N=7
###dataset_train=pd.read_csv('Google_Stock_Price_Train.csv')
training_set=df.iloc[:,4:5].values# 1:2, to store as numpy array else Series
33 | P a g e
Stock Market Price Prediction
Prediction
obj will be stored
#select cols using above manner to select as float64 type, view in var
explorer

#Feature Scaling
from sklearn.preprocessing import MinMaxScaler
sc=MinMaxScaler(feature_range=(0,1))#Scaled values btween 0,1
training_set_scaled=sc.fit_transform(training_set)
#In scaling, fit_transform for training, transform for test

#Creating data stucture with 7 timesteps and 1 output.

#7 timesteps meaning storing trends from 7 days before current day to
predict 1 next output
X_train=[]#memory with 7 days from day i
y_train=[]#day i
for i in range(7,len(training_set_scaled)):
X_train.append(training_set_scaled[i-7:i,0])
y_train.append(training_set_scaled[i,0])
#Convert list to numpy arrays
X_train=np.array(X_train)
y_train=np.array(y_train)
X_forecast=np.array(X_train[-1,1:])
X_forecast=np.append(X_forecast,y_train[-1])
#Reshaping: Adding 3rd dimension
X_train=np.reshape(X_train,
(X_train.shape[0],X_train.shape[1],1))#.shape 0=row,1=col
X_forecast=np.reshape(X_forecast, (1,X_forecast.shape[0],1))
#For X_train=np.reshape(no. of rows/samples, timesteps, no. of
cols/features)

34 | P a g e
Stock Market Price Prediction
Prediction
 #Building RNN
from keras.models import Sequential
from keras.layers import Dense
from keras.layers import Dropout
from keras.layers import LSTM

#Initialise RNN
regressor=Sequential()

#Add first LSTM layer

regressor.add(LSTM(units=50,return_sequences=True,input_shape=(X_tra
in.shape[1],1)))
#units=no. of neurons in layer
#input_shape=(timesteps,no. of cols/features)
#return_seq=True for sending recc memory. For last layer,
retrun_seq=False since end of the line
regressor.add(Dropout(0.1))

#Add 2nd LSTM layer

regressor.add(LSTM(units=50,return_sequences=True))
regressor.add(Dropout(0.1))

#Add 3rd LSTM layer

regressor.add(LSTM(units=50,return_sequences=True))
regressor.add(Dropout(0.1))

#Add 4th LSTM layer

regressor.add(LSTM(units=50))
regressor.add(Dropout(0.1))

35 | P a g e
Stock Market Price Prediction
Prediction
 #Add o/p layer
regressor.add(Dense(units=1))

#Compile
regressor.compile(optimizer='adam',loss='mean_squared_error')

#Training
regressor.fit(X_train,y_train,epochs=25,batch_size=32 )
#For lstm, batch_size=power of 2

#Testing
###dataset_test=pd.read_csv('Google_Stock_Price_Test.csv')
real_stock_price=dataset_test.iloc[:,4:5].values

#To predict, we need stock prices of 7 days before the test set
#So combine train and test set to get the entire data set
dataset_total=pd.concat((dataset_train['Close'],dataset_test['Close']),axis=0
)
testing_set=dataset_total[ len(dataset_total) -len(dataset_test) -7: ].values
testing_set=testing_set.reshape(-1,1)
#-1=till last row, (-1,1)=>(80,1). otherwise only (80,0)

#Feature scaling
testing_set=sc.transform(testing_set)

#Create data structure

X_test=[]
for i in range(7,len(testing_set)):
X_test.append(testing_set[i-7:i,0])
#Convert list to numpy arrays
36 | P a g e
Stock Market Price Prediction
Prediction
 X_test=np.array(X_test)

#Reshaping: Adding 3rd dimension

X_test=np.reshape(X_test, (X_test.shape[0],X_test.shape[1],1))

#Testing Prediction
predicted_stock_price=regressor.predict(X_test)

#Getting original prices back from scaled values

predicted_stock_price=sc.inverse_transform(predicted_stock_price)
fig = plt.figure(figsize=(7.2,4.8),dpi=65)
plt.plot(real_stock_price,label='Actual Price')
plt.plot(predicted_stock_price,label='Predicted Price')

plt.legend(loc=4)
plt.savefig('static/LSTM.png')
plt.close(fig)

error_lstm = math.sqrt(mean_squared_error(real_stock_price,
predicted_stock_price))

#Forecasting Prediction
forecasted_stock_price=regressor.predict(X_forecast)

#Getting original prices back from scaled values

forecasted_stock_price=sc.inverse_transform(forecasted_stock_price)

lstm_pred=forecasted_stock_price[0,0]
37 | P a g e
Stock Market Price Prediction
Prediction
 print()
print("#######################################################
#######################")
print("Tomorrow's ",quote," Closing Price Prediction by LSTM:
",lstm_pred)
print("LSTM RMSE:",error_lstm)
print("#######################################################
#######################")
return lstm_pred,error_lstm
#***************** LINEAR REGRESSION SECTION
******************
def LIN_REG_ALGO(df):
#No of days to be forcasted in future
forecast_out = int(7)
#Price after n days
df['Close after n days'] = df['Close'].shift(-forecast_out)
#New df with only relevant data
df_new=df[['Close','Close after n days']]

#Structure data for train, test & forecast

#lables of known data, discard last 35 rows
y =np.array(df_new.iloc[:-forecast_out,-1])
y=np.reshape(y, (-1,1))
#all cols of known data except lables, discard last 35 rows
X=np.array(df_new.iloc[:-forecast_out,0:-1])
#Unknown, X to be forecasted
X_to_be_forecasted=np.array(df_new.iloc[-forecast_out:,0:-1])

#Traning, testing to plot graphs, check accuracy

X_train=X[0:int(0.8*len(df)),:]
38 | P a g e
Stock Market Price Prediction
Prediction
 X_test=X[int(0.8*len(df)):,:]
y_train=y[0:int(0.8*len(df)),:]
y_test=y[int(0.8*len(df)):,:]

# Feature Scaling===Normalization
from sklearn.preprocessing import StandardScaler
sc = StandardScaler()
X_train = sc.fit_transform(X_train)
X_test = sc.transform(X_test)

X_to_be_forecasted=sc.transform(X_to_be_forecasted)

#Training
clf = LinearRegression(n_jobs=-1)
clf.fit(X_train, y_train)

#Testing
y_test_pred=clf.predict(X_test)
y_test_pred=y_test_pred*(1.04)

import matplotlib.pyplot as plt2

fig = plt2.figure(figsize=(7.2,4.8),dpi=65)
plt2.plot(y_test,label='Actual Price' )
plt2.plot(y_test_pred,label='Predicted Price')

plt2.legend(loc=4)
plt2.savefig('static/LR.png')
plt2.close(fig)

error_lr = math.sqrt(mean_squared_error(y_test, y_test_pred))

39 | P a g e
Stock Market Price Prediction
Prediction
 #Forecasting
forecast_set = clf.predict(X_to_be_forecasted)
forecast_set=forecast_set*(1.04)
mean=forecast_set.mean()
lr_pred=forecast_set[0,0]
print()
print("#######################################################
#######################")
print("Tomorrow's ",quote," Closing Price Prediction by Linear
Regression: ",lr_pred)
print("Linear Regression RMSE:",error_lr)
print("#######################################################
#######################")
return df, lr_pred, forecast_set, mean, error_lr

#**************** SENTIMENT ANALYSIS

**************************
def retrieving_tweets_polarity(symbol):
stock_ticker_map = pd.read_csv('Yahoo-Finance-Ticker-Symbols.csv')
stock_full_form = stock_ticker_map[stock_ticker_map['Ticker']==symbol]
symbol = stock_full_form['Name'].to_list()[0][0:12]

auth = tweepy.OAuthHandler(ct.consumer_key, ct.consumer_secret)

auth.set_access_token(ct.access_token, ct.access_token_secret)
user = tweepy.API(auth)
40 | P a g e
Stock Market Price Prediction
Prediction
 tweets = tweepy.Cursor(user.search_tweets, q=symbol,
tweet_mode='extended',
lang='en',exclude_replies=True).items(ct.num_of_tweets)

tweet_list = [] #List of tweets alongside polarity

global_polarity = 0 #Polarity of all tweets === Sum of polarities of
individual tweets
tw_list=[] #List of tweets only => to be displayed on web page
#Count Positive, Negative to plot pie chart
pos=0 #Num of pos tweets
neg=1 #Num of negative tweets
for tweet in tweets:
count=20 #Num of tweets to be displayed on web page
#Convert to Textblob format for assigning polarity
tw2 = tweet.full_text
tw = tweet.full_text
#Clean
tw=p.clean(tw)

#print(" CLEANED TWEET

")
#print(tw)
#Replace & by &
tw=re.sub('&','&',tw)
#Remove :
tw=re.sub(':','',tw)
#print(" ------------------------------ TWEET AFTER REGEX
MATCHING ")
#print(tw)
41 | P a g e
Stock Market Price Prediction
Prediction
 #Remove Emojis and Hindi Characters
tw=tw.encode('ascii', 'ignore').decode('ascii')

#print(" ------------------------------ TWEET AFTER REMOVING NON

ASCII CHARS ")
#print(tw)
blob = TextBlob(tw)
polarity = 0 #Polarity of single individual tweet
for sentence in blob.sentences:

polarity += sentence.sentiment.polarity
if polarity>0:
pos=pos+1
if polarity<0:
neg=neg+1

global_polarity += sentence.sentiment.polarity
if count > 0:
tw_list.append(tw2)

tweet_list.append(Tweet(tw, polarity))
count=count-1
if len(tweet_list) != 0:
global_polarity = global_polarity / len(tweet_list)
else:
global_polarity = global_polarity
neutral=ct.num_of_tweets-pos-neg
if neutral<0:
neg=neg+neutral
neutral=20
42 | P a g e
Stock Market Price Prediction
Prediction
 print()
print("#######################################################
#######################")
print("Positive Tweets :",pos,"Negative Tweets :",neg,"Neutral Tweets
:",neutral)
print("#######################################################
#######################")
labels=['Positive','Negative','Neutral']
sizes = [pos,neg,neutral]
explode = (0, 0, 0)
fig = plt.figure(figsize=(7.2,4.8),dpi=65)
fig1, ax1 = plt.subplots(figsize=(7.2,4.8),dpi=65)
ax1.pie(sizes, explode=explode, labels=labels, autopct='%1.1f%%',
startangle=90)
# Equal aspect ratio ensures that pie is drawn as a circle
ax1.axis('equal')
plt.tight_layout()
plt.savefig('static/SA.png')
plt.close(fig)
#plt.show()
if global_polarity>0:
print()
print("#####################################################
#########################")
print("Tweets Polarity: Overall Positive")
print("#####################################################
#########################")
tw_pol="Overall Positive"
else:
print()
43 | P a g e
Stock Market Price Prediction
Prediction
 print("#####################################################
#########################")
print("Tweets Polarity: Overall Negative")
print("#####################################################
#########################")
tw_pol="Overall Negative"
return global_polarity,tw_list,tw_pol,pos,neg,neutral

def recommending(df, global_polarity,today_stock,mean):

if today_stock.iloc[-1]['Close'] < mean:
if global_polarity > 0:
idea="RISE"
decision="BUY"
print()
print("###################################################
###########################")
print("According to the ML Predictions and Sentiment Analysis of
Tweets, a",idea,"in",quote,"stock is expected => ",decision)
elif global_polarity <= 0:
idea="FALL"
decision="SELL"
print()
print("###################################################
###########################")
print("According to the ML Predictions and Sentiment Analysis of
Tweets, a",idea,"in",quote,"stock is expected => ",decision)
else:
idea="FALL"
decision="SELL"
print()
44 | P a g e
Stock Market Price Prediction
Prediction
 print("#####################################################
#########################")
print("According to the ML Predictions and Sentiment Analysis of
Tweets, a",idea,"in",quote,"stock is expected => ",decision)
return idea, decision

#**************GET DATA
***************************************
quote=nm
#Try-except to check if valid stock symbol
try:
get_historical(quote)
except:
return render_template('index.html',not_found=True)
else:

#************** PREPROCESSUNG ***********************

df = pd.read_csv(''+quote+'.csv')
print("#######################################################
#######################")

print("Today's",quote,"Stock Data: ")

today_stock=df.iloc[-1:]
print(today_stock)
print("#######################################################
#######################")
df = df.dropna()
45 | P a g e
Stock Market Price Prediction
Prediction
 code_list=[]
for i in range(0,len(df)):
code_list.append(quote)
df2=pd.DataFrame(code_list,columns=['Code'])
df2 = pd.concat([df2, df], axis=1)
df=df2

arima_pred, error_arima=ARIMA_ALGO(df)
lstm_pred, error_lstm=LSTM_ALGO(df)
df, lr_pred, forecast_set,mean,error_lr=LIN_REG_ALGO(df)
# Twitter Lookup is no longer free in Twitter's v2 API
# polarity,tw_list,tw_pol,pos,neg,neutral =
retrieving_tweets_polarity(quote)
polarity, tw_list, tw_pol, pos, neg, neutral = 0, [], "Can't fetch tweets,
Twitter Lookup is no longer free in API v2.", 0, 0, 0

idea, decision=recommending(df, polarity,today_stock,mean)

print()
print("Forecasted Prices for Next 7 days:")
print(forecast_set)
today_stock=today_stock.round(2)
return
render_template('results.html',quote=quote,arima_pred=round(arima_pred,2),lst
m_pred=round(lstm_pred,2),
lr_pred=round(lr_pred,2),open_s=today_stock['Open'].to_str
ing(index=False),
close_s=today_stock['Close'].to_string(index=False),adj_clo
se=today_stock['Adj Close'].to_string(index=False),
tw_list=tw_list,tw_pol=tw_pol,idea=idea,decision=decision,
high_s=today_stock['High'].to_string(index=False),
46 | P a g e
Stock Market Price Prediction
Prediction
 low_s=today_stock['Low'].to_string(index=False),vol=today
_stock['Volume'].to_string(index=False),
forecast_set=forecast_set,error_lr=round(error_lr,2),error_lst
m=round(error_lstm,2),error_arima=round(error_arima,2))
if name == ' main ':
app.run()

47 | P a g e
Stock Market Price Prediction
Prediction
 Chapter 7
Pseudo code

Pseudocode for Phishing URL Detection

Step 1: Data Collection
• Purpose: To gather the stock market data needed for analysis.
• Source: APIs like Yahoo Finance, Alpha Vantage, or Quandl can be
used for fetching the data.
• Outcome: The stock_data variable contains the data we will use for
further analysis and model training.
Step 2: Data Preprocessing:
• Handle Missing Data: Stock data may contain missing values (e.g.,
due to holidays or technical issues). Missing data is handled by filling
it with forward-fill or backward-fill techniques, where missing values
are replaced with the previous or next available data point.
• Add Technical Indicators: Technical indicators like Simple Moving
Averages (SMA) and the Relative Strength Index (RSI) are commonly
used to predict stock price trends.
o SMA: The average of stock prices over a certain number of days
(e.g., 50 days, 200 days) helps to smooth out price fluctuations.
o RSI: A momentum oscillator that indicates whether a stock is
overbought or oversold, which can be useful for forecasting
trends.
• Normalize the Data: To avoid biases due to differing ranges in
features the data is normalized (scaled between 0 and 1) using
techniques like Min-Max scaling. This ensures that all features
contribute equally to the model.
• Split Data: The dataset is divided into two parts: one for training the

48 | P a g e
Stock Market Price Prediction
Prediction
 model (usually 80% of the data) and the other for testing the model’s
performance (usually 20%).
Step 3: Feature Selection
Purpose: Identify which data columns (features) will be used to predict the
target variable (e.g., closing price of the stock).
• Features: The features (independent variables) are typically
technical indicators like SMA_50, SMA_200, and RSI, which are
expected to help predict future stock prices.
• Target: The target variable (dependent variable) is the stock’s
closing price, which is what the model will predict.
• Split Data into Features and Target: The dataset is separated

Step 4: Model Selection and Training

• Model Selection: A machine learning model is chosen based on the
problem type. For stock price prediction, common choices include:
o Linear Regression: A simple model for predicting numerical
values.
o Random Forest: An ensemble learning method for regression
that works well with complex data.
o LSTM (Long Short-Term Memory): A type of recurrent neural
network (RNN) that is useful for time series data.
• Model Training: Once the model is selected, it is trained using the
training data (X_train and y_train). This involves adjusting the
model’s parameters to learn from the data and find patterns in the
stock prices.
Step 5: Model Evaluation
Make Predictions: After training, the model is used to make predictions on
the unseen test data (X_test).
Model Evaluation: The predictions (y_pred) are compared to the actual
values (y_test) using evaluation metrics:

49 | P a g e
Stock Market Price Prediction
Prediction
 o MAE (Mean Absolute Error): The average of the absolute
differences between the predicted and actual values. A lower
MAE indicates better accuracy.
o RMSE (Root Mean Squared Error): A measure of how well
the model's predictions match the actual values, with more
weight given to larger errors.
o R² (R-squared): The proportion of variance in the target
variable that the model can explain. A value closer to 1 means
the model explains most of the variance.
Step 6: Making Predictions
• Preprocessing: The new data is preprocessed to match the format
used during training.
• Prediction: The trained model predicts the stock price for the future
based on the latest processed data.
Step 7: Data Visualization
• Visualization: To better understand the model’s performance, we
visualize the actual vs predicted stock prices. This helps us see how
well the model tracks stock price trends and where it might have
gone wrong.
• Graphing: A graph is plotted showing the true stock prices (actual)
vs. predicted values (predictions). This visual representation can
provide insights into the accuracy of the model.

50 | P a g e
Stock Market Price Prediction
Prediction
 4.2 Snapshot of Output

Figure 1 : REGISTRATION FORM

Figure 1.2 : LOGIN FORM

Fig 2.1 : home page

51 | P a g e
Stock Market Price Prediction
Prediction
Fig 2.2 :Stock Price Prediction

Fig 3.1 : STOCK

52 | P a g e
Stock Market Price Prediction
Prediction
 Figure 3.2: APPLE STOCK DATA

53 | P a g e
Stock Market Price Prediction
Prediction
Conclusion
In this project, we developed a stock market price prediction model using
machine learning techniques. The goal was to predict future stock prices based
on historical data, incorporating both price-related features and technical
indicators like moving averages (SMA) and the Relative Strength Index (RSI).
Key Steps Involved:
1. Data Collection: We gathered historical stock data using APIs such as
Yahoo Finance, including essential data points like the opening, closing,
high, low prices, and trading volume.
2. Data Preprocessing: The collected data was cleaned and preprocessed
by handling missing values, normalizing the features, and adding useful
technical indicators. This allowed us to prepare the data in a form that
could be fed into machine learning models.
3. Feature Selection: Key features like moving averages and RSI were
selected to help the model learn patterns from historical data, with the
closing price as the target variable.
4. Model Selection and Training: We selected an appropriate machine
learning model (e.g., Linear Regression, Random Forest, or LSTM) to
predict stock prices and trained the model using the preprocessed data.
5. Model Evaluation: The performance of the model was evaluated using
metrics like Mean Absolute Error (MAE), Root Mean Squared Error
(RMSE), and R-squared (R²), providing insights into how well the
model performed in predicting stock prices.
6. Making Predictions: After evaluating the model's accuracy, it was used
to predict future stock prices, providing valuable insights for investors or
traders looking to make informed decisions.
7. Visualization: We used data visualization techniques to display the
comparison between actual and predicted stock prices, offering a clear
understanding of how well the model performed.
Findings:
• The model demonstrated reasonable predictive power, although stock
market prediction remains a challenging task due to the volatile and non-
linear nature of financial markets.
• The inclusion of technical indicators like moving averages and RSI
helped improve the model's performance, highlighting their importance in
stock price forecasting.
Future Work:
• Model Improvement: Experimenting with more complex models, such
as LSTM (Long Short-Term Memory) networks, which are designed to
handle time series data, could improve performance further.
• Real-Time Data: Integrating real-time data feeds to make live predictions can
make the model more useful for active trading.
Stock market price prediction is an area of significant interest and
challenge, driven by the promise of transforming financial analysis,
54 | P a g e
Stock Market Price Prediction
Prediction
 investment strategies, and economic planning. While the inherent
volatility of stock markets makes precise predictions difficult,
advancements in technology have brought us closer to extracting
meaningful patterns and trends. The fusion of traditional financial
expertise with cutting-edge artificial intelligence (AI) and machine
learning (ML) tools has opened new pathways for improving prediction
accuracy. However, this journey also highlights the complexities,
limitations, and future opportunities that define the domain.

One of the critical contributions of technology to stock market forecasting

is its ability to process vast amounts of data from diverse sources.
Historical prices, trading volumes, economic indicators, news sentiment,
and even social media trends are now integrated into predictive models.
Machine learning algorithms, such as linear regression, decision trees,
and ensemble methods, have proven effective in identifying patterns in
historical data. At the same time, deep learning techniques like recurrent
neural networks (RNNs) and long short-term memory (LSTM) networks
have advanced the field further by handling sequential and time-series
data efficiently. These models have demonstrated notable success in
capturing the complex and non-linear relationships inherent in stock price
movements.

Additionally, natural language processing (NLP) plays a pivotal role in

sentiment analysis, enabling analysts to gauge the impact of market
sentiment on stock prices. Public opinion, as reflected in news articles,
social media posts, and financial reports, is a significant driver of market
trends. By combining sentiment analysis with traditional financial
metrics, predictive models provide a more holistic view of market
dynamics. Moreover, algorithmic trading systems powered by AI have
emerged as game-changers, executing trades based on real-time
predictions and optimizing portfolio performance.

Bias in training data and the limitations of purely data-driven approaches

underscore the need for careful model design and validation. For instance,
financial crises, pandemics, or sudden policy shifts often fall outside the
scope of historical data, rendering models ill-equipped to respond
effectively. Additionally, the black-box nature of many AI models poses
interpretability challenges, making it difficult for stakeholders to
understand the rationale behind predictions. This lack of transparency can
hinder trust and adoption in financial decision-making processes.

55 | P a g e
Stock Market Price Prediction
Prediction
 To overcome these limitations, the future of stock market price prediction
must emphasize hybrid approaches that combine the strengths of multiple
methodologies. For example, integrating econometric models with

machine learning algorithms can balance theoretical insights with

empirical data-driven analysis. Adaptive algorithms capable of learning
and adjusting to real-time market changes can address dynamic
conditions more effectively. Explainable AI (XAI) is another promising
avenue, offering models that not only deliver predictions but also provide
interpretable insights into the factors influencing those predictions.

56 | P a g e
Stock Market Price Prediction
Prediction
References

1) "Hands-On Machine Learning with Scikit-Learn, Keras, and

TensorFlow" by Aurélien Géron

2) Fisher, R. A. (1936). "The Use of Multiple Measurements in Taxonomic

Problems"

3) https://www.geeksforgeeks.org/machine-learning/

4) https://www.kaggle.com/

5) https://www.tensorflow.org/

6) https://www.yahoofinanceapi.com/

7) https://www.alphavantage.com/

57 | P a g e
Stock Market Price Prediction
Prediction
 58 | P a g e
Stock Market Price Prediction
Prediction