Is NSE ADANITRANS a Buy?

Adani Transmission Limited Research Report

Summary

Accurate prediction of stock price movements is highly challenging and significant topic for investors. Investors need to understand that stock price data is the most essential information which is highly volatile, non-linear, and non-parametric and are affected by many uncertainties and interrelated economic and political factors across the globe. Artificial Neural Networks (ANN) have been found to be an efficient tool in modeling stock prices and quite a large number of studies have been done on it. We evaluate Adani Transmission Limited prediction models with Multi-Task Learning (ML) and Polynomial Regression1,2,3,4 and conclude that the NSE ADANITRANS stock is predictable in the short/long term. According to price forecasts for (n+3 month) period: The dominant strategy among neural network is to Hold NSE ADANITRANS stock.

Key Points

  1. Game Theory
  2. Why do we need predictive models?
  3. Stock Forecast Based On a Predictive Algorithm

NSE ADANITRANS Target Price Prediction Modeling Methodology

We consider Adani Transmission Limited Stock Decision Process with Multi-Task Learning (ML) where A is the set of discrete actions of NSE ADANITRANS stock holders, F is the set of discrete states, P : S × F × S → R is the transition probability distribution, R : S × F → R is the reaction function, and γ ∈ [0, 1] is a move factor for expectation.1,2,3,4


F(Polynomial Regression)5,6,7= p a 1 p a 2 p 1 n p j 1 p j 2 p j n p k 1 p k 2 p k n p n 1 p n 2 p n n X R(Multi-Task Learning (ML)) X S(n):→ (n+3 month) i = 1 n r i

n:Time series to forecast

p:Price signals of NSE ADANITRANS stock

j:Nash equilibria (Neural Network)

k:Dominated move

a:Best response for target price

 

For further technical information as per how our model work we invite you to visit the article below: 

How do AC Investment Research machine learning (predictive) algorithms actually work?

NSE ADANITRANS Stock Forecast (Buy or Sell) for (n+3 month)

Sample Set: Neural Network
Stock/Index: NSE ADANITRANS Adani Transmission Limited
Time series to forecast n: 21 Nov 2022 for (n+3 month)

According to price forecasts for (n+3 month) period: The dominant strategy among neural network is to Hold NSE ADANITRANS stock.

X axis: *Likelihood% (The higher the percentage value, the more likely the event will occur.)

Y axis: *Potential Impact% (The higher the percentage value, the more likely the price will deviate.)

Z axis (Yellow to Green): *Technical Analysis%

Adjusted IFRS* Prediction Methods for Adani Transmission Limited

  1. When measuring a loss allowance for a lease receivable, the cash flows used for determining the expected credit losses should be consistent with the cash flows used in measuring the lease receivable in accordance with IFRS 16 Leases.
  2. Paragraphs 6.9.7–6.9.13 provide exceptions to the requirements specified in those paragraphs only. An entity shall apply all other hedge accounting requirements in this Standard, including the qualifying criteria in paragraph 6.4.1, to hedging relationships that were directly affected by interest rate benchmark reform.
  3. An entity can also designate only changes in the cash flows or fair value of a hedged item above or below a specified price or other variable (a 'one-sided risk'). The intrinsic value of a purchased option hedging instrument (assuming that it has the same principal terms as the designated risk), but not its time value, reflects a one-sided risk in a hedged item. For example, an entity can designate the variability of future cash flow outcomes resulting from a price increase of a forecast commodity purchase. In such a situation, the entity designates only cash flow losses that result from an increase in the price above the specified level. The hedged risk does not include the time value of a purchased option, because the time value is not a component of the forecast transaction that affects profit or loss.
  4. An entity's business model refers to how an entity manages its financial assets in order to generate cash flows. That is, the entity's business model determines whether cash flows will result from collecting contractual cash flows, selling financial assets or both. Consequently, this assessment is not performed on the basis of scenarios that the entity does not reasonably expect to occur, such as so-called 'worst case' or 'stress case' scenarios. For example, if an entity expects that it will sell a particular portfolio of financial assets only in a stress case scenario, that scenario would not affect the entity's assessment of the business model for those assets if the entity reasonably expects that such a scenario will not occur. If cash flows are realised in a way that is different from the entity's expectations at the date that the entity assessed the business model (for example, if the entity sells more or fewer financial assets than it expected when it classified the assets), that does not give rise to a prior period error in the entity's financial statements (see IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors) nor does it change the classification of the remaining financial assets held in that business model (ie those assets that the entity recognised in prior periods and still holds) as long as the entity considered all relevant information that was available at the time that it made the business model assessment.

*International Financial Reporting Standards (IFRS) are a set of accounting rules for the financial statements of public companies that are intended to make them consistent, transparent, and easily comparable around the world.

Conclusions

Adani Transmission Limited assigned short-term B2 & long-term B2 forecasted stock rating. We evaluate the prediction models Multi-Task Learning (ML) with Polynomial Regression1,2,3,4 and conclude that the NSE ADANITRANS stock is predictable in the short/long term. According to price forecasts for (n+3 month) period: The dominant strategy among neural network is to Hold NSE ADANITRANS stock.

Financial State Forecast for NSE ADANITRANS Adani Transmission Limited Stock Options & Futures

Rating Short-Term Long-Term Senior
Outlook*B2B2
Operational Risk 4464
Market Risk4957
Technical Analysis5967
Fundamental Analysis3848
Risk Unsystematic8032

Prediction Confidence Score

Trust metric by Neural Network: 88 out of 100 with 491 signals.

References

  1. Gentzkow M, Kelly BT, Taddy M. 2017. Text as data. NBER Work. Pap. 23276
  2. Bennett J, Lanning S. 2007. The Netflix prize. In Proceedings of KDD Cup and Workshop 2007, p. 35. New York: ACM
  3. Hastie T, Tibshirani R, Friedman J. 2009. The Elements of Statistical Learning. Berlin: Springer
  4. Holland PW. 1986. Statistics and causal inference. J. Am. Stat. Assoc. 81:945–60
  5. K. Tumer and D. Wolpert. A survey of collectives. In K. Tumer and D. Wolpert, editors, Collectives and the Design of Complex Systems, pages 1–42. Springer, 2004.
  6. Chernozhukov V, Chetverikov D, Demirer M, Duflo E, Hansen C, Newey W. 2017. Double/debiased/ Neyman machine learning of treatment effects. Am. Econ. Rev. 107:261–65
  7. Athey S, Imbens GW. 2017a. The econometrics of randomized experiments. In Handbook of Economic Field Experiments, Vol. 1, ed. E Duflo, A Banerjee, pp. 73–140. Amsterdam: Elsevier
Frequently Asked QuestionsQ: What is the prediction methodology for NSE ADANITRANS stock?
A: NSE ADANITRANS stock prediction methodology: We evaluate the prediction models Multi-Task Learning (ML) and Polynomial Regression
Q: Is NSE ADANITRANS stock a buy or sell?
A: The dominant strategy among neural network is to Hold NSE ADANITRANS Stock.
Q: Is Adani Transmission Limited stock a good investment?
A: The consensus rating for Adani Transmission Limited is Hold and assigned short-term B2 & long-term B2 forecasted stock rating.
Q: What is the consensus rating of NSE ADANITRANS stock?
A: The consensus rating for NSE ADANITRANS is Hold.
Q: What is the prediction period for NSE ADANITRANS stock?
A: The prediction period for NSE ADANITRANS is (n+3 month)

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