Sell Kapas Apr @ 1470 SL 1480 TGT 1460-1450. NCDEX - Kedia Advisory
Cottoncandy
Cottoncandy prices fell by 1.14% to Rs.54,670 amid profit booking, following a recent bullish streak driven by concerns over a shrinking domestic crop. The Cotton Association of India (CAI) revised its production forecast downward by 4 lakh bales to 291.30 lakh bales (170 kg each), largely due to reduced output in Maharashtra. Previously, CAI estimated production at 295.30 lakh bales. Despite the lower crop outlook, prices saw limited upside due to weak mill demand and ample current stocks. As of March-end, total cotton supply, including imports and opening stocks, stood at 306.83 lakh bales. Imports for the current season are expected to surge to 33 lakh bales, more than doubling from 15.20 lakh bales last year, reflecting heightened concerns over crop shrinkage. Meanwhile, exports are projected to decline sharply to 16 lakh bales, down from 28.36 lakh bales a year earlier. The estimated closing stock for 2024–25 has been lowered to 23.49 lakh bales from 30.19 lakh bales last year, indicating tightening domestic availability by season end. On the global front, the U.S. balance sheet shows a marginal reduction in exports and a corresponding increase in ending stocks. Global production and consumption forecasts have also been reduced, particularly due to lower demand from China and Indonesia, with minor gains in Turkey. Technically, the market is undergoing long liquidation, with open interest falling by 1.18% to 251. Support lies at Rs.53,940, with further downside potential to Rs.53,220, while resistance is seen at Rs.55,440, and a break above could take prices to Rs.56,220.
SELL COTTONCANDY MAY @ 54800 SL 55100 TGT 54500-54200. MCX
Cocudakl
SELL COCUDAKL MAY @ 2950 SL 2990 TGT 2910-2980. NCDEX
KAPAS
SELL KAPAS APR @ 1470 SL 1480 TGT 1460-1450. NCDEX
