Sell COCUDAKL APR @ 2900 SL 2940 TGT 2860-2820. NCDEX - Kedia Advisory
Cottoncandy
Cottoncandy prices settled lower by 1.15% at Rs 54,980 due to profit booking after recent gains driven by lower-than-expected U.S. planting estimates. The USDA's planting intentions report projected U.S. all-cotton planting at 9.8 million acres for 2025, reflecting a significant 12% reduction from 2024. Similarly, the Cotton Association of India (CAI) revised its 2024-25 crop estimate downward by 2% to 295.30 lakh bales due to lower-than-expected output in central India. Declining domestic production has prompted a sharp rise in cotton imports, with CAI estimating a surge to 32 lakh bales in the 2024-25 season, compared to 15.2 lakh bales in the previous year. By February-end, India had already imported 22 lakh bales. However, lower exports are expected, with shipments projected to drop by 40% to 17 lakh bales, down from 28.36 lakh bales last year. Meanwhile, Brazil’s cotton production is forecasted to grow by 1.6% to 3.76 million tons, supported by a 4.8% expansion in the planting area. Despite tight domestic supply, upside in prices remains limited due to increased global production and subdued mill demand. Mills remain well-stocked and are not under immediate purchasing pressure. Technically, fresh selling pressure has emerged, with open interest rising by 1.32% to 231 contracts. Cottoncandy has key support at Rs 54,700, with further downside potential to Rs 54,420. On the upside, resistance is seen at Rs 55,180, and a breakout above could push prices toward Rs 55,380.
SELL COTTONCANDY MAY @ 55400 SL 55800 TGT 55000-54700. MCX
Cocudakl
SELL COCUDAKL APR @ 2900 SL 2940 TGT 2860-2820. NCDEX
KAPAS
BUY KAPAS APR @ 1455 SL 1445 TGT 1465-1475. NCDEX
