Buy Kapas Apr @ 1440 SL 1430 TGT 1450-1460. NCDEX - Kedia Advisory
Cottoncandy
BUY COTTONCANDY MAR @ 52500 SL 52200 TGT 52800-53000. MCX
Cottoncandy prices edged up by 0.29% to settle at 52,660 on short covering, after previous declines caused by increased supply and limited mill buying. Mills remain well-stocked, reducing immediate purchasing needs. Brazil’s cotton production for 2024-25 is projected to rise by 1.6% to 3.7616 million tons, with a 4.8% expansion in the cotton planting area, indicating strong supply potential. Meanwhile, the Cotton Corporation of India (CCI) is likely to procure over 100 lakh bales at the Minimum Support Price (MSP) to stabilize the market. According to the Cotton Association of India (CAI), overall cotton output in the current season (2024-25) is expected to drop to 301.75 lakh bales, down from 327.45 lakh bales in 2023-24, primarily due to lower yields in Gujarat and the northern region. Despite the decline in production, the quality of cotton remains high. Total cotton supply by January 2025 was estimated at 234.26 lakh bales, including fresh pressings of 188.07 lakh bales, imports of 16 lakh bales, and an opening stock of 30.19 lakh bales. Domestic consumption is projected at 315 lakh bales for the season, while exports are estimated at 17 lakh bales, down from 28.36 lakh bales in the previous season. Technically, the market is witnessing short covering, with open interest declining by 0.39% to 257 contracts while prices gained 150 rupees. Cottoncandy has support at 52,320, with a further downside test at 51,970. On the upside, resistance is seen at 52,930, and a breakout above could push prices toward 53,190.
COCUDAKL
BUY COCUDAKL MAR @ 2580 SL 2540 TGT 2620-2660. NCDEX
KAPAS
BUY KAPAS APR @ 1440 SL 1430 TGT 1450-1460. NCDEX
COTWASOIL
SELL COTWASOIL MAR @ 1300 SL 1310 TGT 1385-1375. NCDEX
