Literature Review :-E.schoneburg1 achieved an prediction accuracy of around 90% in a short span of 10 days of by using the help of Neural Networks. By the use of Back Propagation Algorithm they got the absolute value prediction. The results they produced using neural networks conclude that we can achieve far more accuracy by using the Neural NetworksWei wu, Jiuping Xu2 stated that Fundamental Analysis is a very powerful tool to predict the stock price and the Technical analysis should be paid more attention to forecast a stock price. The correlation between Fundamental analysis and technical analysis will give a Major Improvement in predicting the stock priceDebashish Das and Mohammad Shorif Uddin3 stated that variety of techniques of Neural Networks are used to predict stocks. Data Mining and Neural Networks are used effectively to deal with Data that needs prediction. Neural Networks are used to extract useful information from a huge data set and data mining is used to predict future trends and behaviours.
Eldon Y. Li4 have discussed about why neural networks are popular in the field of Business. He also stated that after the emergence of Multi-level and trainable ANN, they became the feasible options for Business models which requires solving complex equations and recognizing patterns from imperfect InputsDONALD F. SPECHT5 proved that the sigmoid activation function used in Neural Networks replaced with exponential function forms Probabilistic Neural Networks(PNN) that computes Non-linear Decision Boundaries which approaches the Bayes optimal will be formed. It also stated that for an Application the PNN paradigm was 200,000 times faster than Back Propagation.
It also discussed other advantage of PNN which is unlike many Networks, It operates completely in Parallel which doesn’t need the feedback from the other Neurons to the Inputs.Marijana Zekic6 discussed about the Importance and advantages of Neural Networks(NN) as an Artificial Intelligence(AI) methods over other other statistical and other Methods that doesnot Include AI. The other uses of NN are i) NN can predict accurately in the situations of Uncertain Data and the combinations with the other Methods.
Ii) NN’s are mostly used in the predicting stock prices, although stock market prediction is a Inexpedient process Manna Majumder, MD Anwar Hussian7 discussed about the application of Artificial Neural Networks in forecasting the stocks in Indian Stock Market. It predicted the direction of closing value of an Index with an performance accuracy of 89.65% and with average accuracy of 69.72% over a span of four years.
In extremely volatile markets like Indian stock markets the high performance measures of ANN, reported in the paper will be of extreme use and advise the Investors in Investing in the stocks.