Buy Kapas Apr @ 1560 SL 1540 TGT 1580-1590. NCDEX - Kedia Advisory
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Cotton
The cotton market experienced a notable upswing yesterday, with Cottoncandy settling up by 0.73% at 60920, driven by concerns over supply constraints and sustained cotton consumption. This uptrend was further supported by significant developments in the global cotton landscape, particularly in the United States and India, which are key players in the cotton market. The 2023/24 U.S. cotton balance sheet reflected lower ending stocks compared to the previous month, with increased exports and reduced mill use, despite unchanged production figures. This shift was primarily fueled by heightened export forecasts, up by 200,000 bales to 12.3 million, buoyed by strong shipment and sales performances. Consequently, ending stocks were revised downwards to 2.8 million bales, equivalent to 20% of total disappearance, indicating a tighter supply outlook. On the global scale, the 2023/24 cotton ending stocks saw a decrease of nearly 700,000 bales, driven by lower beginning stocks and production levels. While consumption remained relatively stable, with increases in China and Vietnam offsetting declines in other key markets such as Turkey, the United States, and Thailand. Notably, India emerged as a significant player in the cotton export market, with February exports set to reach the highest level in two years, driven by competitive pricing and strong demand from Asian buyers. In light of these developments, the technical outlook for Cottoncandy suggests a bullish sentiment, with the market witnessing fresh buying and a gain in open interest by 2.64% to settle at 506. Prices are currently up by 440 rupees, with support levels at 60340 and resistance anticipated at 61240. A breach above resistance could potentially lead to further price appreciation, with a possible test of 61570 levels. However, a downside movement could see prices testing 59770 levels.
BUY COTTONCANDY MAR @ 60700 SL 60500 TGT 61100-61300. MCX
COCUDAKL
BUY COCUDAKL MAR @ 2540 SL 2500 TGT 2590-2630. NCDEX
KAPAS
BUY KAPAS APR @ 1560 SL 1540 TGT 1580-1590. NCDEX
