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Cottoncandy

Cotton closed lower by -0.9% at 59540, experiencing profit booking after recent gains driven by supply concerns and sustained cotton consumption. The U.S. cotton balance sheet for 2023/24 indicates lower ending stocks compared to the previous month, with increased exports and decreased mill use, while production remains unchanged. The export forecast is raised to 12.3 million bales, reflecting a strong pace of shipments and sales. World cotton ending stocks for 2023/24 are nearly 700,000 bales lower, with reduced supplies from lower beginning stocks and production. India's cotton exports in February are set to reach the highest level in two years, driven by global price rallies that make Indian cotton competitive for Asian buyers. Contracts for the export of 400,000 bales (68,000 metric tons) have been signed, primarily to China, Bangladesh, and Vietnam. The country could surpass earlier expectations by exporting 2 million bales in the 2023/24 marketing year. Despite the positive export outlook for India, cotton prices faced profit booking, leading to a -0.9% decline. The market is under fresh selling, evidenced by a 4.59% gain in open interest, settling at 479, alongside a -540 rupee decrease in prices. Support for Cottoncandy is identified at 59240, with a potential test of 58930 if breached. On the upside, resistance is expected at 59920, and a breakthrough could lead to a test of 60290. Traders should closely monitor these levels, considering the evolving export dynamics and technical indicators for strategic decision-making in the cotton market.

BUY COTTONCANDY MAR @ 59500 SL 59200 TGT 60000-60300. MCX

COCUDAKL

BUY COCUDAKL MAR @ 2600 SL 2560 TGT 2650-2680. NCDEX

KAPAS

BUY KAPAS APR @ 1550 SL 1530 TGT 1575-1590. NCDEX