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Open Access
Article
Publication date: 19 September 2024

Srivatsa Maddodi and Srinivasa Rao Kunte

The Indian stock market can be tricky when there's trouble in the world, like wars or big conflicts. It's like trying to read a secret message. We want to figure out what makes…

Abstract

Purpose

The Indian stock market can be tricky when there's trouble in the world, like wars or big conflicts. It's like trying to read a secret message. We want to figure out what makes investors nervous or happy, because their feelings often affect how they buy and sell stocks. We're building a tool to make prediction that uses both numbers and people's opinions.

Design/methodology/approach

Hybrid approach leverages Twitter sentiment, market data, volatility index (VIX) and momentum indicators like moving average convergence divergence (MACD) and relative strength index (RSI) to deliver accurate market insights for informed investment decisions during uncertainty.

Findings

Our study reveals that geopolitical tensions' impact on stock markets is fleeting and confined to the short term. Capitalizing on this insight, we built a ground-breaking predictive model with an impressive 98.47% accuracy in forecasting stock market values during such events.

Originality/value

To the best of the authors' knowledge, this model's originality lies in its focus on short-term impact, novel data fusion and high accuracy. Focus on short-term impact: Our model uniquely identifies and quantifies the fleeting effects of geopolitical tensions on market behavior, a previously under-researched area. Novel data fusion: Combining sentiment analysis with established market indicators like VIX and momentum offers a comprehensive and dynamic approach to predicting market movements during volatile periods. Advanced predictive accuracy: Achieving the prediction accuracy (98.47%) sets this model apart from existing solutions, making it a valuable tool for informed decision-making.

Details

Journal of Capital Markets Studies, vol. 8 no. 2
Type: Research Article
ISSN: 2514-4774

Keywords

Article
Publication date: 15 August 2024

Srivatsa Maddodi and Srinivasa Rao Kunte

This study explores the complex impact of COVID-19 on India's financial sector, moving beyond simplistic public health vs. economy views. We assess market vulnerabilities and…

Abstract

Purpose

This study explores the complex impact of COVID-19 on India's financial sector, moving beyond simplistic public health vs. economy views. We assess market vulnerabilities and analyze how public sentiment, measured through Google Trends, can predict stock market fluctuations. We propose a novel framework using Google Trends for financial sentiment analysis, aiming to improve understanding and preparedness for future crises.

Design/methodology/approach

Hybrid approach leverages Google Trends as sentiment tool, market data, and momentum indicators like Rate of Change, Average Directional Index and Stochastic Oscillator, to deliver accurate, market insights for informed investment decisions during pandemic.

Findings

Our study reveals that the pandemic significantly impacted the Indian financial sector, highlighting its vulnerabilities. Capitalizing on this insight, we built a ground-breaking predictive model with an impressive 98.95% maximum accuracy in forecasting stock market values during such events.

Originality/value

To the best of authors knowledge this model's originality lies in its focus on short-term impact, novel data fusion and methodology, and high accuracy.• Focus on short-term impact: Our model uniquely identifies and quantifies the fleeting effects of COVID-19 on market behavior.• Novel data fusion and framework: A novel framework of sentiment analysis was introduced in the form of Trend Popularity Index. Combining trend popularity index with momentum offers a comprehensive and dynamic approach to predicting market movements during volatile periods.• High predictive accuracy: Achieving the prediction accuracy (98.93%) sets this model apart from existing solutions, making it a valuable tool for informed decision-making.

Details

Managerial Finance, vol. 50 no. 10
Type: Research Article
ISSN: 0307-4358

Keywords

Open Access
Article
Publication date: 26 November 2024

Guler Aras

Abstract

Details

Journal of Capital Markets Studies, vol. 8 no. 2
Type: Research Article
ISSN: 2514-4774

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