Sell COTWASOIL MAR @ 1270 SL 1280 TGT 1260-1250. NCDEX - Kedia Advisory
Cottoncandy
Cottoncandy prices declined slightly by 0.07%, settling at Rs 54,000, as global production estimates signaled a strong supply outlook. Brazil’s 2024-25 cotton production is projected to increase by 1.6% to 3.7616 million tons, with a 4.8% expansion in planting area to 2.0369 million hectares, boosting supply expectations. Meanwhile, India’s cotton output is expected to decline to 301.75 lakh bales for the 2024-25 season, compared to 327.45 lakh bales in 2023-24, mainly due to lower yields in Gujarat, Punjab, and Haryana. However, CAI noted that cotton quality remains high. The total cotton supply till January 2025 is estimated at 234.26 lakh bales, consisting of 188.07 lakh bales from fresh pressings, 16 lakh bales from imports, and 30.19 lakh bales of opening stock. Domestic cotton consumption is projected at 315 lakh bales, with exports estimated at 17 lakh bales, significantly lower than 28.36 lakh bales in the previous season. Ending stocks for January 2025 are projected at 112.26 lakh bales, with a significant portion held by CCI, Maharashtra Federation, traders, and textile mills. On the global front, the U.S. cotton balance sheet saw minimal changes, with mill use reduced by 100,000 bales, raising the ending stocks-to-use ratio to 39%. China’s cotton production increased by 1 million bales, while Argentina and Kazakhstan reported declines, balancing global supply. Technically, the market is under long liquidation, with open interest unchanged at 258 lots. Cottoncandy has support at Rs 53,850, with a downside target of Rs 53,710, while resistance is seen at Rs 54,110, and a breakout above could push prices to Rs 54,230.
BUY COTTONCANDY MAR @ 53900 SL 53600 TGT 54200-54400. MCX
Cocudakl
BUY COCUDAKL MAR @ 2670 SL 2635 TGT 2710-2740. NCDEX
KAPAS
BUY KAPAS APR @ 1470 SL 1460 TGT 1480-1490. NCDEX
COTWASOIL
SELL COTWASOIL MAR @ 1270 SL 1280 TGT 1260-1250. NCDEX
