Design and Implementation of Efficient Regression Analysis Techniques in Derivative Market

Abstract

The equity market is the spot where almost all major economic transactions in the world happen at an aggressive rate. The shareowners can avail the financial benefits of the companies whose stocks they hold. Among different sectors, derivatives are an emerging transaction area in financial market, which can avoid the sudden change in price, thus controlling the risk. A correct forecasting of this stock market trend beforehand can make huge profits. One of the most authentic way to predict the future is to try to interpret the present and accordingly we have assign our objective as the analysis of Indian Stock Market so as to build a better future for investment. The work till date on this problem seems mostly focused on data mining techniques. Ninety days' data of some of the popular companies such as LT, SBIN, TATAMOTORS, HINDALCO and AXISBANK are taken for this context and indicators such as open interest, number of contracts and deliverable quantity have chosen for regression analyses. This paper analyses and shows the effect of these variables on predicting the rise or fall of closing price of stock future indices.