Buy Kapas Apr @ 1450 SL 1440 TGT 1460-1470. NCDEX - Kedia Advisory
Cottoncandy
Cottoncandy prices slipped by 0.27% to settle at Rs.52,560, driven by rising supplies and sluggish mill buying, as mills remain well-stocked without immediate procurement needs. The Cotton Association of India (CAI) cut its 2024-25 crop estimate by 2% to 295.30 lakh bales (170 kg each), down from 301.75 lakh bales, mainly due to lower-than-expected yields in central India. A notable 10% decline in acreage is set to reduce this year’s output from 327.45 lakh bales last season. The government’s second advance estimate also trimmed projections to 294.25 lakh bales, reflecting a 1.5% reduction. Regionally, CAI forecasts Gujarat’s production to drop by 4 lakh bales and Maharashtra’s by 3 lakh bales, while Odisha may see a modest rise of 0.55 lakh bales. Imports are projected to double to 32 lakh bales in 2024-25, with 22 lakh bales already imported by February-end, reflecting a strategic move to balance domestic shortages. Despite steady domestic consumption, pegged at 315 lakh bales, exports are expected to fall by 40% to 17 lakh bales, leading to lower closing stocks at 23.49 lakh bales (down from 30.19 lakh bales last year). Globally, Brazil’s production is forecasted to rise 1.6% to 3.7616 million tons, driven by a 4.8% expansion in planting areas. Technically, the market is under long liquidation, with open interest down 34.44% to 59 contracts. Support is seen at Rs.52,440, with a further drop potentially testing Rs.52,330. Resistance lies at Rs.52,720, and a breakout could push prices toward Rs.52,890.
BUY COTTONCANDY MAR @ 52400 SL 52100 TGT 52700-53000. MCX
COCUDAKL
SELL COCUDAKL APR @ 2780 SL 2820 TGT 2740-2700. NCDEX
KAPAS
BUY KAPAS APR @ 1450 SL 1440 TGT 1460-1470. NCDEX
