Application of Data Mining Tools for Selected Scripts of Stock Market

Abstract

One of the most important problems in modern finance is finding efficient ways to summarize and visualize the stock market data to give individuals or institutions useful information about the market behavior for investment decisions Therefore, Investment can be considered as one of the fundamental pillars of national economy. So, at the present time many investors look to find criterion to compare stocks together and selecting the best and also investors choose strategies that maximize the earning value of the investment process. Therefore the enormous amount of valuable data generated by the stock market has attracted researchers to explore this problem domain using different methodologies. Therefore research in data mining has gained a high attraction due to the importance of its applications and the increasing generation information. So, Data mining tools such as association rule, rule induction method and Apriori algorithm techniques are used to find association between different scripts of stock market, and also much of the research and development has taken place regarding the reasons for fluctuating Indian stock exchange. But, now days there are two important factors such as gold prices and US Dollar Prices are more dominating on Indian Stock Market and to find out the correlation between gold prices, dollar prices and BSE index statistical correlation is used and this helps the activities of stock operators, brokers, investors and jobbers. They are based on the forecasting the fluctuation of index share prices, gold prices, dollar prices and transactions of customers. Hence researcher has considered these problems as a topic for research.