Sell Cottoncandy May @ 54500 SL 54800 TGT 54200-54000. MCX - Kedia Advisory
COTTONCANDY
Cottoncandy prices declined by 0.5% to settle at Rs.53,920 amid long liquidation, driven by weaker buying sentiment despite a downward revision in domestic crop projections. The Cotton Association of India (CAI) has further trimmed its 2024-25 production estimate by 4 lakh bales to 291.30 lakh bales (of 170 kg each), mainly due to lower output from Maharashtra. This reflects ongoing challenges in domestic cotton cultivation, prompting expectations of increased reliance on imports. Imports for the season are now projected to more than double to 33 lakh bales, up from 15.2 lakh bales last year, highlighting tighter domestic supply conditions. However, despite lower production, domestic consumption remains flat, limiting upward price momentum. Mills appear adequately stocked and are not showing urgent buying interest, which is capping price gains. As of March-end, total cotton supply, including opening stocks and imports, stood at 306.83 lakh bales, while closing stocks for the season are estimated to decline to 23.49 lakh bales from 30.19 lakh bales a year earlier. Internationally, the U.S. cotton balance sheet saw a slight downward revision in exports and a corresponding increase in ending stocks. Global production saw minor reductions, offsetting a rise in Chinese output. Mill use and trade have also dipped, particularly in China and Indonesia, signaling softer global demand. Technically, Cottoncandy is under pressure from long liquidation with open interest down by 0.4% to 248 contracts. Support lies at Rs.53,480, with a break below potentially leading to Rs.53,030. Resistance is at Rs.54,340, with further upside capped near Rs.54,750.
SELL COTTONCANDY MAY @ 54500 SL 54800 TGT 54200-54000. MCX
COCUDAKL
BUY COCUDAKL MAY @ 2860 SL 2820 TGT 2900-2920. NCDEX
KAPAS
SELL KAPAS APR @ 1590 SL 1600 TGT 1575-1560. NCDEX
