Sell Kapas Apr @ 1470 SL 1480 TGT 1460-1450. NCDEX - Kedia Advisory
Cottoncandy
Cottoncandy settled lower by 0.8% at 55,500 due to profit booking after a recent rally. The price correction came amidst revised production forecasts by the Cotton Association of India (CAI), which lowered its domestic crop estimate by 4 lakh bales to 291.30 lakh bales, mainly due to lower production in Maharashtra. This downward revision is based on inputs from state member associations, which have led to tighter supply projections. CAI also revised its total cotton supply for the season to 306.83 lakh bales, including imports of 25 lakh bales and opening stocks of 30.19 lakh bales. However, despite the tighter supply, cotton exports for the 2024-25 season are pegged at just 16 lakh bales, significantly lower than last year's 28.36 lakh bales. India’s cotton imports for the 2024-25 season are expected to more than double, reaching 33 lakh bales, driven by the reduction in domestic production. This is a substantial increase from last season’s 15.20 lakh bales. In the global context, the U.S. cotton balance sheet for 2024/25 shows reduced exports and higher ending stocks, while global textile mill usage and imports are both lower due to reduced consumption in China and Indonesia. Technically, the market is under long liquidation, with open interest falling by 0.78%. Support is seen at 55,440, and if prices dip below this level, the next support is at 55,370. Resistance is at 55,590, and a break above this level could push prices towards 55,670.
SELL COTTONCANDY MAY @ 55800 SL 56200 TGT 55400-55000. MCX
Cocudakl
SELL COCUDAKL MAY @ 2990 SL 3030 TGT 2950-2920. NCDEX
KAPAS
SELL KAPAS APR @ 1470 SL 1480 TGT 1460-1450. NCDEX
