Sell Cocudakl Apr @ 2750 SL 2780 TGT 2720-2700. NCDEX - Kedia Advisory
Cottoncandy
Cottoncandy prices slipped by 0.64% to Rs.52,700, driven by increased supply and sluggish mill buying as mills remain well-stocked. The Cotton Association of India (CAI) further cut its 2024-25 crop estimate by 2% to 295.30 lakh bales, reflecting a significant 10% decline in cultivation area, particularly in central India. Government projections also revised the cotton crop downward to 294.25 lakh bales from 299 lakh bales. Gujarat and Maharashtra are expected to see reductions of 4 lakh and 3 lakh bales, respectively, while Odisha shows a marginal rise of 0.55 lakh bales. Imports are set to double to 32 lakh bales from 15.2 lakh bales last season, with 22 lakh bales already brought in by February-end. Domestic consumption remains pegged at 315 lakh bales, with consumption hitting 142 lakh bales by February. Exports, however, are projected to fall sharply by 40% to 17 lakh bales from 28.36 lakh bales last year. Closing stocks for the season ending September 2025 are expected to tighten at 23.49 lakh bales, compared to 30.19 lakh bales previously. Globally, Brazil’s production is forecasted to rise by 1.6% to 3.7616 million tons, driven by a 4.8% expansion in planting areas. Meanwhile, U.S. projections saw minimal changes, with domestic mill use lowered and ending stocks-to-use ratio rising to 39%. Technically, the market is under long liquidation, with open interest dropping 32.84% to settle at 90. Support is seen at Rs.51,960, with a further downside to Rs.51,220 possible. Resistance is likely at Rs.53,090, and a breakout could push prices to Rs.53,480.
BUY COTTONCANDY MAR @ 52500 SL 52200 TGT 52800-53000. MCX
COCUDAKL
SELL COCUDAKL APR @ 2750 SL 2780 TGT 2720-2700. NCDEX
KAPAS
BUY KAPAS APR @ 1450 SL 1440 TGT 1460-1470. NCDEX
