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Cottoncandy 

Cotton candy prices saw a notable increase of 0.84%, settling at 62520, driven by federal reports indicating lower-than-expected U.S. planting estimates and firm export sales for the natural fiber. The Cotton Association of India (CAI) and the Cotton Crop Production Committee (CCPC) revised their production estimates upwards for the current season, reflecting a positive outlook for cotton production. However, ICE prices dropped amidst increased supply expectations and lower demand from mills, exerting some downward pressure on the market. The global cotton supply and demand estimates for 2023/24 showed higher production, consumption, and trade, with lower ending stocks. Despite reduced production estimates in the U.S. and Argentina, India's increased crop offset these declines, leading to a marginal increase in world production. Higher consumption in China and India, coupled with increased imports by China, contributed to higher global consumption and trade. However, ending stocks saw a marginal decrease, indicating a relatively balanced market outlook. Meanwhile, the Southern India Mills' Association (SIMA) advised textile mills against panic buying of cotton, highlighting recent price hikes and urging caution amidst fast-approaching international prices. Capacity utilization at mills increased, with a significant portion already contracted for exports, suggesting a steady demand outlook. From a technical perspective, the cotton candy market witnessed fresh buying, with open interest increasing by 0.7% to settle at 430, accompanied by a significant price increase of 520 rupees. Cotton candy is currently finding support at 62340, with potential downside targets at 62170 levels. Conversely, resistance is likely to be encountered at 62640, with a move above indicating a possible test of 62770.

BUY COTTONCANDY MAY @ 62200 SL 61800 TGT 62600-62900. MCX

COCUDAKL 

BUY COCUDAKL APR @ 2600 SL 2570 TGT 2650-2680. NCDEX

KAPAS 

BUY KAPAS APR @ 1540 SL 1520 TGT 1560-1580. NCDEX