Buy Cocudakl Mar @ 2450 SL 2420 TGT 2500-2530. NCDEX - Kedia Advisory
Cottoncandy
The cotton market experienced a modest decline of -0.07% yesterday, settling at 58560, primarily attributed to concerns over supply dynamics and sustained consumption trends. The latest report on the 2023/24 U.S. cotton balance sheet revealed a reduction in ending stocks, driven by increased exports and decreased mill use, despite unchanged production figures. Export forecasts were revised upwards by 200,000 bales to 12.3 million, reflecting robust shipment activities and sales momentum. However, despite these positive export trends, ending stocks are estimated at 2.8 million bales, constituting 20 percent of total disappearance. Globally, the 2023/24 cotton ending stocks saw a decrease, with lower beginning stocks and production contributing to reduced supplies. While world consumption remained relatively stable, shifts were observed across different regions, with notable increases in China and Vietnam counterbalanced by declines in Turkey, the United States, and Thailand. In the U.S., the USDA weekly sales report indicated a significant surge in net sales for the 2023/24 period, driven by strong demand from China and Vietnam. Exports consistently surpassed 200,000 bales in five of the last six reports, reaching a marketing-year peak at 396,700 bales. Meanwhile, the CAI maintained its estimates for domestic consumption and production for the 2023-24 season, based on inputs from various sources. Technically, the market is undergoing long liquidation, with open interest remaining unchanged at 419 while prices dipped by -40 rupees. Support for Cottoncandy is seen at 58340, with a potential test of 58130 levels, while resistance is likely at 58760, with a potential breakout leading to testing 58970 levels. Overall, market participants are closely monitoring supply dynamics, consumption trends, and technical indicators for further insights into price movements.
BUY COTTONCANDY MAR @ 59300 SL 59000 TGT 59600-59900. MCX
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BUY COCUDAKL MAR @ 2450 SL 2420 TGT 2500-2530. NCDEX
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