Identifying explosive behavioral trace in the CNX nifty index: A quantum finance approach

Abstract

The fnancial markets are found to be fnite Hilbert space, inside which the stocks are displaying their wave-particle duality. Te Reynolds number, an age old fluid mechanics theory, has been redefned in investment fnance domain to identify possible explosive moments in the stock exchange. CNX Nify Index, a known index on the National Stock Exchange of India Ltd., has been put to the test under this situation. Te Reynolds number (its fnancial version) has been predicted, as well as connected with plausible behavioral rationale. While predicting, both econometric and machinelearning approaches have been put into use. Te primary objective of this paper is to set up an efcient econophysics' proxy for stock exchange explosion. Te secondary objective of the paper is to predict the Reynolds number for the future. Last but not least, this paper aims to trace back the behavioral links as well.