Buy Kapas Apr @ 1450 SL 1440 TGT 1465-1475. NCDEX - Kedia Advisory
Cottoncandy
BUY COTTONCANDY MAR @ 52800 SL 52500 TGT 53300-53500. MCX
Cottoncandy prices declined by 0.71% to settle at Rs.53,130 due to increased supply and limited mill buying. Mills remain well-stocked, reducing immediate purchasing requirements. The rise in Brazil’s 2024-25 cotton production, projected at 3.7616 million tons (1.6% higher), along with a 4.8% expansion in planting area, indicates strong supply potential in the global market. Additionally, the Cotton Corporation of India (CCI) is expected to procure over 100 lakh bales at the Minimum Support Price (MSP) during the current cotton year, providing some price stability. The Cotton Association of India (CAI) estimates a decline in India’s cotton output for the 2024-25 season to 301.75 lakh bales, down from 327.45 lakh bales in 2023-24, mainly due to lower yields in Gujarat, Punjab, and Haryana. However, the overall cotton quality remains high. As of January 2025, total cotton supply is estimated at 234.26 lakh bales, including fresh pressings of 188.07 lakh bales, imports of 16 lakh bales, and opening stocks of 30.19 lakh bales. Domestic consumption is projected at 315 lakh bales, while exports are expected to decline to 17 lakh bales from 28.36 lakh bales in the previous season. In the U.S., domestic mill use has been reduced by 100,000 bales, increasing ending stocks to a 39% stock-to-use ratio. Technically, the market is under long liquidation, with open interest remaining unchanged at 253 contracts while prices dropped by Rs.380. Cottoncandy has support at Rs.51,960, with a further test at Rs.50,780 possible, while resistance is seen at Rs.53,760, with a break above leading to Rs.54,380.
COCUDAKL
BUY COCUDAKL MAR @ 2620 SL 2580 TGT 2660-2690. NCDEX
KAPAS
BUY KAPAS APR @ 1450 SL 1440 TGT 1465-1475. NCDEX
COTWASOIL
SELL COTWASOIL MAR @ 1305 SL 1315 TGT 1295-1285. NCDEX
