A Stock Market Trends Analysis of Reliance using Machine Learning Techniques

This research paper focuses on the importance of stock price forecasting and its impact on the stock market and the economy. The stock market is a significant indicator of the overall health of the economy, and fluctuations in stock values can have a significant impact on both individual investors and large corporations. The accuracy of stock price predictions depends on several factors such as the state of the economy, firm profitability, and investor sentiment. Trading and investing rely heavily on accurate stock price predictions to anticipate market movements and make informed decisions. Stock price forecasting is a vital endeavor because of the significant impact it has on financial markets. When investors have access to reliable projections of future stock values, they are in a better position to make educated choices on the timing and strategy of stock purchases and sales, which may eventually lead to increased profits. In this paper, the primary focus is on predicting the stock price of Reliance Industries Limited using an algorithm known as LSTM (Long Short-Term Memory). The information was obtained from the website “Yahoo Finance” using the company ticker symbol RELIANCE.NS, beginning on January 8, 2020, and continuing through December 8, 2022, with a weekly gap between each collection. The project’s success is measured using various evaluation metrics, including ROOT MEAN SQUARED ERROR (RMSE), MEAN ABSOLUTE ERROR (MAE), and MEAN SQUARED ERROR (MSE), and visual representations of the results. The performance of a nation’s stock market is typically regarded as a reliable indicator of the state of that nation’s economy. It is a measurement of how well firms are performing and may also be used to anticipate the level of economic activity that will occur in the future if it is accurate enough. Therefore, accurate stock price forecasting is crucial for investors, financial analysts, and policymakers to make informed decisions and mitigate risks associated with the stock market.