Sell Cotwasoil Feb @ 1230 SL 1240 TGT 1220-1210. NCDEX - Kedia Advisory
Cottoncandy
BUY COTTONCANDY MAR @ 53600 SL 53300 TGT 53900-54200. MCX
Observations
CottonCandy settled 0.54% higher at Rs.53,780, supported by India's upward crop revision and firm demand from garment industries. The Cotton Association of India (CAI) increased its 2024-25 cotton production estimate by 2 lakh bales to 304.25 lakh bales due to higher output in Telangana (+6 lakh bales). However, North Indian production is expected to decline by 3.5 lakh bales, with Punjab, Haryana, and Rajasthan witnessing a 43% drop in kapas arrivals by November-end. Despite increased supply, demand remains robust, as cotton yarn prices in South India are rising due to strong export orders and higher consumption estimates of 315 lakh bales. On the global front, Brazil’s 2024-25 cotton production forecast was revised down to 3.79 million tonnes from 3.83 million tonnes due to reduced acreage in Mato Grosso. The WASDE report projects global cotton production to rise by 1.2 million bales to 117.4 million bales, driven by higher output in India and Argentina. Meanwhile, India’s December-end stocks stood at 85.04 lakh bales, while exports were estimated at 7 lakh bales, reflecting stable overseas demand. Technically, the market is under short covering, with open interest remaining unchanged at 268 lots. Support is seen at Rs.53,780, with a break below testing Rs.53,780 again. On the upside, resistance is at Rs.53,780, and a move above this level could drive prices towards Rs.53,780.
Cocudakl
BUY COCUDAKL FEB @ 2690 SL 2660 TGT 2720-2750. NCDEX
Kapas
BUY KAPAS APR @ 1465 SL 1455 TGT 1480-1490. NCDEX
Cotwasoil
SELL COTWASOIL FEB @ 1230 SL 1240 TGT 1220-1210. NCDEX
