Sell Kapas APR @ 1580 SL 1590 TGT 1570-1560. NCDEX - Kedia Advisory
Cottoncandy
Cottoncandy prices rose by 0.48% to settle at ?54,200, driven by tightening domestic supply projections and short covering in the futures market. The Cotton Association of India (CAI) revised its domestic production estimate for the 2024-25 season down by 4 lakh bales to 291.30 lakh bales of 170 kg each, primarily due to lower output in Maharashtra. This revision from the earlier projection of 295.30 lakh bales signals ongoing supply constraints. Total cotton supply till the end of March is estimated at 306.83 lakh bales, including 25 lakh bales of imports and opening stocks of 30.19 lakh bales. Stocks as of March-end stood at 127.83 lakh bales, with 27 lakh bales held by mills and the remaining 100.83 lakh bales with Cotton Corporation of India (CCI), Maharashtra Federation, and traders. India’s cotton imports are expected to more than double to 33 lakh bales, up from 15.20 lakh bales last season, amid shrinking domestic output. Meanwhile, exports are pegged lower at 16 lakh bales, down from 28.36 lakh bales in the previous season. On the global front, the USDA revised world cotton production down by 69,000 bales due to lower output in Argentina and Cote d’Ivoire, despite increased output in China. Global consumption also declined by 520,000 bales. Technically, the market is under short covering with open interest falling by 5.82% to 178. Support is seen at Rs 53,930, and a break below could test Rs 53,650, while resistance is at Rs 54,370, with a possible move toward Rs 54,530.
SELL COTTONCANDY MAY @ 54200 SL 54500 TGT 53800-53500. MCX
COCUDAKL
SELL COCUDAKL JUN @ 3030 SL 3060 TGT 3000-2980. NCDEX
KAPAS
SELL KAPAS APR @ 1580 SL 1590 TGT 1570-1560. NCDEX
