Buy Kapas Apr @ 1445 SL 1435 TGT 1455-1465. NCDEX - Kedia Advisory
Cottoncandy
BUY COTTONCANDY MAR @ 52400 SL 52100 TGT 52700-52900. MCX
Cottoncandy prices settled 0.45% lower at ?52,650 due to increased supply and limited mill buying, as mills remain well-stocked with no immediate procurement needs. Brazil’s 2024-25 cotton production is projected to rise by 1.6% to 3.7616 million tons, with a 4.8% expansion in the cotton planting area, reinforcing strong supply potential. In India, the Cotton Association of India (CAI) revised its 2024-25 crop estimate downward by 2% to 295.30 lakh bales from an earlier 301.75 lakh bales due to lower-than-expected production in central India. A nearly 10% decline in the cultivated area is expected to reduce total output compared to last season’s 327.45 lakh bales. The government’s second advance estimate also lowered the cotton crop forecast by 1.5% to 294.25 lakh bales. Pressing estimates have been cut by 4 lakh bales in Gujarat and 3 lakh bales in Maharashtra, while Odisha is projected to see a slight increase of 0.55 lakh bales. India’s cotton imports are expected to double to 32 lakh bales this season, with 22 lakh bales already imported by February-end. Exports are projected to decline by 40% to 17 lakh bales from 28.36 lakh bales last year. CAI anticipates closing stocks at 23.49 lakh bales, down from 30.19 lakh bales in the previous season. Technically, the market is under long liquidation as open interest dropped by 0.8% to 249 contracts. Cottoncandy has immediate support at ?52,600, with further downside to ?52,550, while resistance is at ?52,700, with a potential upside to ?52,750.
COCUDAKL
SELL COCUDAKL APR @ 2735 SL 2760 TGT 2700-2680. NCDEX
KAPAS
BUY KAPAS APR @ 1445 SL 1435 TGT 1455-1465. NCDEX
