Computational Intelligence for Autonomous Finance

11Machine Learning Algorithm in Indian Stock Market for Revising and Refining the Equity Valuation Models

Nitha K. P.¹, Suraj E. S.^2* and Ranjith Karat³

¹Sree KeralaVarma College, Computer Science Department, Kerala, Thrissur, India

²MBA Department, KCT Business School, Coimbatore, Tamil Nadu, India

³SME, Kerala University of Fisheries and Ocean Studies (KUFOS), Kochi, Kerala, India

Abstract

Predicting stock prices using machine learning approaches has become an attractive topic for researchers. Traditional statistical methods are increasingly seen as inadequate for analyzing large volumes of data effectively. Machine learning methods excel in uncovering hidden patterns and forecasting future trends and behaviors in the stock market. This study focuses on supervised machine learning algorithms applied to classify stock market data in India. The study aims to enhance existing equity valuation models to improve prediction accuracy. These model results will assist in making informed decisions on whether to buy, sell, or hold stocks in the Indian stock market

Keywords: Machine learning, classification, supervised machine learning

11.1 Introduction

The stock market involves several purchasers and sellers. Many studies have been conducted to forecast stock prices using both traditional and modern methods. This study was conducted to understand the advantages of the machine learning approach in stock price prediction after revising the equity models. Predicting the stock market ...