The Indian stock market is witnessing an all-time boom since the pandemic. An increasing trend can be seen in the openness of Indian citizens in investing in stocks. A recent SBI report mentioned that over 44.7 lakh new retail investor accounts were opened during the first two months of 2021. The total number of individual investors in the country hit the highest of 142 lakh this year.
The rising number of individuals willing to invest in the stock market has allowed many technological solutions and platforms to enter the consumer market to aid people in investing effortlessly.
Companies are now using artificial intelligence and machine learning technologies to provide predictive analytics services to customers for giving them a better understanding of the possible performance of stocks before making an investment.
Most of the available platforms generate real-time stock analysis that consumers use to decide whether to invest in a stock or not. However, not every individual can devote their whole day to check trends and make accurate investing decisions.
StockEdge has precisely targeted those individuals who needed a platform where they can find accurate stock signals all together at the end of the day. StockEdge is an online research and analytics platform that provides its users with the right learning and impactful data analytics to help them make independent investment decisions.
StockEdge is a Kolkata-based fintech company founded by Vinay Pagaria, Vivek Bajaj, and Vineet Patawari. The company specializes in providing ‘end of the day’ analytics that helps customers effectively invest in the stock market without the need to track stock signals 24/7.
To better understand the use of technologies like artificial intelligence and machine learning in stock analytics, we connect with the Co-Founder and CTO of StockEdge, Vinay Pagaria. “Our motto as a company is to simplify finance for our users and take jargon away,” said Pagaria.
StockEdge provides various technical and fundamental analysis tools mainly focused on statistical studies that help customers get an easy understanding of different indicators like moving averages, relative strength index, financial ratios, and many more. StockEdge runs available data through their defined filtered mechanism to generate accurate technical and fundamental analytics. The company simplifies the tasks involved in these analyses by shifting the entire process to their back-end tech, resulting in an easy-to-use and seamless customer experience.
For example, users can search “Stocks with high Relative Strength Index,” and the StockEdge application will automatically analyze stocks and show users the required results. “I have always felt that good analytics will always be a combination of artificial intelligence and human intelligence,” said Vinay Pagaria.
StockEdge firmly believes that human intelligence should drive artificial intelligence in order to generate better outcomes. StockEdge currently uses artificial intelligence solutions for mainly two purposes. Firstly, for better analytics for the customers and secondly for analysis of the User Behavior.
StockEdge uses artificial intelligence and machine learning to analyze vast amounts of gathered data related to the stock market and generate unified results. For instance, the Indian stock market allows companies to report the names of their investors in a manually typed format that creates confusion as an investor’s name can be spelled or written differently by two companies. This issue makes it difficult for individuals to analyze the market.
StockEdge’s artificial intelligence algorithms group all those related entities and club them into a single entity that gives its customers a consolidated view of the Investor’s portfolio and actions. Earlier, StockEdge used a rule-based approach to provide this unique feature, but eventually, they integrated artificial intelligence solutions to automate this process of identifying and clubbing related entities.
Vinay Pagaria said, “Once we did it manually, we had a lot of data with which we could train the AI algorithm.” This feature helps StockEdge reduce the time consumed in analytics and also provides almost close to accurate and insightful results to its customers. It also makes StockEdge stand out from the competition as no other platform uses such artificial intelligence algorithms in this format.
The fintech firm provides a sentiment analysis tool that assigns scores to Concall Summaries of Companies to aid customers in deciding which company reports to focus on.
StockEdge also uses artificial intelligence and machine learning tools to determine, predict its customer behavior, and provide them personalized user experience. StockEdge gathers data from the actions taken by users on the application and uses them to send personalized recommendations, reminders, and notifications to customers.
The company has developed an artificial intelligence algorithm that analyzes critical customer information like past purchases, activity, and more to forecast the chances of customers renewing their StockEdge subscriptions. As the StockEdge application is a subscription-based platform, this artificial intelligence tool helps the sales team to focus more on customers who are more likely to make a purchase. This helps the company effectively utilize time in order to increase sales.
StockEdge also offers a social platform service to its customers named StockEdge Club that allows customers to interact with the company’s analytics team. This feature helps customers learn more about stocks and the stock market. It is a stock market-oriented community that lets users share learnings and ideas related to investments.
When asked about stock price prediction tools, Vinay Pagaria said that the company had earlier tried multiple algorithms for predicting stock price, but they achieved mixed results. He said, “It is not that simple and straightforward that artificial intelligence does everything and tells every morning what to buy and what to sell.” According to him, the stock price prediction AI algorithm is still a very open-ended subject across the world, and more research is needed for achieving high accuracy results that can be shared with the retail audience.
“We do not give direct tips in terms of buying and selling. We have always restricted ourselves to be a knowledge and unbiased research tool provider, which people can trust,” he added.
While talking about projects in the pipeline, Vinay Pagaria mentioned that the company is working on algorithms that can be used to score stocks using various existing parameters. This feature will help StockEdge categorize stocks based on the scores to help customers make informed investment decisions.
StockEdge is committed to providing a transparent learning and research service to its customers by continuously evolving with time to help users invest in the Indian stock market.