Investment Strategies in Indian Stock Market Using Vader Algorithm Sentimental Analysis

Abstract

Due to volatility and complexity of the stock market, it is challenging to predict and examine the critical factors that drives the stock market. Nevertheless, many people feel that investing in stock market is risky mainly because of complex factors determining the share prices in the market. Sometimes investors may lose more money from the stock market due to its risk. An understanding of the risks and various outside influences have an immense effect on the investment decisions. Market information, news, tips, market sentiments are an essential source for investing in stock market. Hence, the present study focused on evaluating the importance of sentiments of Sensex stocks driving stock prices in Indian stock market. This study suggests the stocks with positive sentiments, negative sentiments and its polarity score calculated using Vader algorithm for taking short term investment decisions to generate profit from stock market.