Sell Cocudakl JAN @ 2790 SL 2830 TGT 2740-2700. NCDEX - Kedia Advisory
COTTONCANDY
Cotton prices, represented by Cottoncandy, saw a marginal decline of -0.04%, settling at 56220, driven by profit booking after a recent price increase. The Cotton Association of India (CAI) maintained its pressing estimate for the 2023-24 season at 294.10 lakh bales, contributing to market dynamics. CAI President Atul S Ganatra highlighted that the total supply till the end of November was estimated at 92.05 lakh bales, consisting of market arrivals, imports, and opening stocks. Reports indicate a decline in the infestation of pink bollworm in the cotton crop, reducing from 30.62% during 2017-18 to 10.80% in 2022-23. However, global factors also play a role, with Brazilian cotton shipments increasing in November, but overall, the International Cotton Advisory Committee (ICAC) projects global cotton production to outpace consumption for the second consecutive year. The 2023/24 U.S. cotton balance sheet shows slightly lower consumption but higher production and ending stocks. Global cotton balance sheets reflect lower consumption but higher production and stocks, influenced by factors like beginning stocks and changes in production estimates. In terms of technical aspects, the market is undergoing fresh selling, with a 1.46% gain in open interest to settle at 209, accompanied by a price decline of -20 rupees. Cottoncandy finds support at 56080, and a breach could lead to a test of 55950 levels. On the upside, resistance is identified at 56360, with a potential move above pushing prices to test 56510. Traders are closely monitoring these levels amid global production dynamics, consumption trends, and external factors affecting the cotton market.
BUY COTTONCANDY JAN @ 56200 SL 56000 TGT 56300-56500. MCX
COCUDAKL
SELL COCUDAKL JAN @ 2790 SL 2830 TGT 2740-2700. NCDEX
KAPAS
BUY KAPAS APR @ 1550 SL 1540 TGT 1570-1590. NCDEX
