Buy Kapas Apr @ 1465 SL 1455 TGT 1480-1490. NCDEX - Kedia Advisory
Cottoncandy
BUY COTTONCANDY MAR @ 53600 SL 53300 TGT 53900-54200. MCX
Observations
Cottoncandy rose 0.09% to Rs.53,830, supported by supply constraints and fluctuating production estimates. Brazil’s cotton production forecast for 2024-25 was lowered to 3.79 million tonnes, down from 3.83 million tonnes, due to a reduction in acreage in Mato Grosso, the largest producing region. Meanwhile, the Cotton Association of India (CAI) raised India's production estimates by 2 lakh bales, bringing the total to 304.25 lakh bales. Higher-than-expected production in Telangana (+6 lakh bales) contributed to this revision, while North India saw a decline of 3.5 lakh bales. Despite this, the market remains cautious, as kapas arrivals in North Indian states have dropped 43% year-on-year until November 30, causing supply disruptions. Farmers in Punjab, Haryana, and Rajasthan are holding back their produce, expecting better prices, while ginners and spinners face raw material shortages. Additionally, rising cotton yarn prices in South India due to strong demand from the garment industry and export orders are lending support. Total supplies till December-end were 176.04 lakh bales, with consumption at 84 lakh bales and exports at 7 lakh bales. December-end stocks stood at 85.04 lakh bales, while CAI raised its annual consumption forecast to 315 lakh bales, indicating a pickup in demand. Technically, the market is under short covering, as open interest dropped 3.36% to 259 contracts. Support is at Rs.53,170, with a break below potentially testing Rs.52,500. Resistance is seen at Rs.54,180, with a move above leading to Rs.54,520.
Cocudakl
BUY COCUDAKL FEB @ 2690 SL 2660 TGT 2720-2750. NCDEX
Kapas
BUY KAPAS APR @ 1465 SL 1455 TGT 1480-1490. NCDEX
Cotwasoil
SELL COTWASOIL FEB @ 1225 SL 1235 TGT 1215-1205. NCDEX
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