  Predicting future stock prices and their movement patterns is a complex
problem. Hence, building a portfolio of capital assets using the predicted
prices to achieve the optimization between its return and risk is an even more
difficult task. This work has carried out an analysis of the time series of the
historical prices of the top five stocks from the nine different sectors of the
Indian stock market from January 1, 2016, to December 31, 2020. Optimum
portfolios are built for each of these sectors. For predicting future stock
prices, a long-and-short-term memory (LSTM) model is also designed and
fine-tuned. After five months of the portfolio construction, the actual and the
predicted returns and risks of each portfolio are computed. The predicted and
the actual returns of each portfolio are found to be high, indicating the high
precision of the LSTM model.
