Sell Cocudakl Apr @ 2800 SL 2830 TGT 2760-2730. NCDEX - Kedia Advisory
Cottoncandy
Cottoncandy prices saw a marginal increase of 0.04% to settle at 53,900, driven by a significant rise in supply and restrained mill buying. Mills are well-stocked and are not in immediate need of purchases, limiting demand. The Cotton Association of India (CAI) revised its 2024-25 crop estimate downward by 2% to 295.30 lakh bales from its earlier projection of 301.75 lakh bales due to lower-than-expected output in central India. A nearly 10% reduction in cultivation area is expected to bring production down from last season’s 327.45 lakh bales. CAI projects cotton imports to double in the 2024-25 season, reaching 32 lakh bales compared to last season’s 15.20 lakh bales, with 22 lakh bales already imported by February-end. Meanwhile, domestic consumption remains steady at 315 lakh bales, while exports are expected to decline by 40% to 17 lakh bales. Closing stocks are projected to be lower at 23.49 lakh bales, compared to 30.19 lakh bales last year. On the global front, Brazil’s cotton production is set to rise by 1.6%, and the cotton planting area has expanded by 4.8%, signaling strong supply potential. Technically, the market experienced short covering with no change in open interest, remaining at 211 contracts. Prices saw a minor gain of 20 rupees. Immediate support is seen at 53,840, with a further downside potential to 53,770, while resistance is at 53,990, and a breakout above could push prices to 54,070.
SELL COTTONCANDY MAY @ 54100 SL 54400 TGT 53700-53500. MCX
COCUDAKL
SELL COCUDAKL APR @ 2800 SL 2830 TGT 2760-2730. NCDEX
KAPAS
BUY KAPAS APR @ 1450 SL 1440 TGT 1460-1470. NCDEX
