Buy Kapas Apr @ 1470 SL 1460 TGT 1480-1490. NCDEX - Kedia Advisory
Cottoncandy
BUY COTTONCANDY JAN @ 53500 SL 53200 TGT 53800-54000. MCX
Cottoncandy prices declined by 0.91% to settle at Rs.52,370, driven by an upward revision in crop projections by the Cotton Association of India (CAI). The trade body increased its 2024-25 output estimate by 2 lakh bales to 304.25 lakh bales, primarily due to higher-than-expected production in Telangana, which saw a revision of 6 lakh bales. However, in North India, production is projected to decline by 3.5 lakh bales. Despite increased supply, demand remains robust, with CAI raising its consumption forecast by 2 lakh bales to 315 lakh bales for the season. The WASDE report further pressured prices by projecting a rise in global cotton production to 117.4 million bales for 2024-25, supported by higher output in India and Argentina. Meanwhile, North Indian states - Punjab, Haryana, and Rajasthan - have seen a 43% drop in kapas arrivals until November 30 compared to last year. This has led some farmers to withhold supply, while ginners and spinners in Punjab face raw material shortages. Despite these factors, downside pressure on cotton prices remains limited due to increased cotton yarn demand from garment industries and strong export orders. As of December-end, total cotton supplies in India stood at 176.04 lakh bales, with consumption reaching 84 lakh bales and exports at 7 lakh bales. The market is experiencing long liquidation, with open interest dropping by 18.85% to 99 contracts. Immediate support is at Rs.52,170, with further downside potential to Rs.51,960. Resistance is at Rs.52,720, and a breakout above this level could push prices towards Rs.53,060.
Cocudakl
BUY COCUDAKL FEB @ 2660 SL 2620 TGT 2700-2730. NCDEX
Kapas
BUY KAPAS APR @ 1470 SL 1460 TGT 1480-1490. NCDEX
Cotwasoil
SELL COTWASOIL FEB @ 1225 SL 1235 TGT 1215-1205. NCDEX
