FORECASTING STOCK MARKET OF BANK USING BROWNIAN MOTION

ABSTRACT. The principal factors namely smoothened value, changes in the
smoothened value and the trend estimate are analyzed for the forecast of stock
market. Forecasting error is calculated from the difference of peak value and
the forecast value. Share values of a bank for three consecutive years are ana-
lyzed. Values are saved for each and every month and the variations are mon-itored carefully. The factors related to stock market are tabulated and graphsare plotted. It is concluded that the stock market follows Brownian motion and
hence it is considered as fractals sets.