DEPARTMENT OF ARTIFICIAL INTELLIGENCE AND MACHINE LEARNING
JYOTHY INSTITUTE OF TECHNOLOGY
BENGALURU- 560082
PROBLEM STATEMENT
The goal is to design and develop an AI-powered tool that
assists users in analyzing and predicting stock trends for
the National Stock Exchange (NSE) and Bombay Stock
Exchange (BSE). This tool shall empower traders and
investors to make informed decisions, ultimately
maximizing profits and minimizing losses.
To achieve this, the tool shall provide actionable insights
and forecasts based on technical indicators, historical
data, and sentiment analysis.
Features of the Tool:
1. Buy/Sell Signals on the chart
The tool shall generate Buy or Sell signals based on stock
price trends, using daily or weekly data.
It shall use popular technical indicators like:
RSI (Relative Strength Index)
MACD (Moving Average Convergence Divergence)
Bollinger Bands
Moving Averages
These indicators shall help improve the accuracy of the
signals.
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2. Stock Trend Prediction
The tool shall analyze past stock price movements to predict
future trends (e.g., whether the stock will go up or down).
This feature shall use machine learning and statistical
methods to make accurate predictions.
3. Sentiment Analysis
The tool shall assess public opinion about a stock by
analyzing news, social media posts, and online forums.
It shall rate the sentiment on a scale from 1 to 100:
1-40: Negative Sentiment (e.g., "Strong Sell")
41-60: Neutral Sentiment
61-100: Positive Sentiment (e.g., "Strong Buy")
Data Sources examples but not limited to:
The tool shall use reliable sources to gather data, including:
1. Stock Market Data
Yahoo Finance API: For stock prices and real-time updates.
Alpha Vantage API: For stock indicators and trends.
NSE/BSE Websites: For direct Indian stock market data.
2. Sentiment Data
News APIs: Google News or NewsCatcher for news articles.
Social Media APIs: Twitter for public posts about stocks.
Web Scraping: Extract content from financial blogs and forums
using tools like BeautifulSoup or Scrapy.
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3. Technical and Machine Learning Libraries
TA-Lib or pandas_ta: For technical indicators.
Scikit-learn: For machine learning models.
TensorFlow/PyTorch: For deep learning methods.
Large Language model to summarize your findings
Deliverables
Trading Strategies
1. Intraday Strategy: Same day buy and sell
2. Swing Strategy: Buy and sell signal with a time frame of 1
day to 3 months
Interactive Dashboard
For both the strategies mentioned above, a simple and
user-friendly dashboard to display:
Buy/Sell signals for stocks.
Predicted trends (e.g., likely uptrend or downtrend).
Sentiment scores (e.g., positive, neutral, or negative).
Support Resistance (e.g., breakout, breakdown).
Evaluation Criteria:
1. Maximum profit with no loss/minimum loss.
2. Accuracy of Predictions: How effective and reliable
are the Buy/Sell signals and trend forecasts?
3. Innovative Use of Indicators: Creativity in selecting
and combining indicators for improved insights.
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4. Sentiment Analysis Performance: Quality and
relevance of sentiment analysis in providing actionable
recommendations.
5. User Interface: How intuitive and visually appealing is
the dashboard?
6. Scalability and Efficiency: Ability of the tool to handle
large datasets efficiently.
References:
1. One of the best machine learning strategies explained for you to
use as the starting point https://in.tradingview.com/v/WhBzgfDu/
2. Build Tradingview pine script BUY SELL strategy
https://www.youtube.com/watch?v=6JPWTDa8aG4
3. Basics of Stock market https://www.investopedia.com/stocks-
4427785
4. Complete information about stock specific fundamentals and
screener https://www.screener.in/
5. Stock screener and technical analysis https://chartink.com/
6. Back testing and Complete Tradingview playlist
https://www.youtube.com/watch?v=qns8R59TZ70
7. https://www.nseindia.com/
8. https://www.bseindia.com/
Note:
References will help you for a quick start, but you need to explore on your
own, to implement the best solution for this problem statement. Google,
ChatGPT and YouTube are your peer helpers.
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