Sell Kapas Apr @ 1590 SL 1600 TGT 1580-1570. NCDEX - Kedia Advisory
Cottoncandy
Cottoncandy prices inched up marginally by 0.02% to settle at 54,510 amid a mix of supportive fundamentals and subdued mill demand. The Cotton Association of India (CAI) further trimmed its domestic crop estimate by 4 lakh bales to 291.30 lakh bales for the 2024–25 season, primarily due to lower production in Maharashtra. This downward revision, based on end-March inputs from state associations, adds to concerns about tightening domestic supply. Total cotton supply till March-end is estimated at 306.83 lakh bales, inclusive of 25 lakh bales of imports and 30.19 lakh bales of opening stock. Of this, 127.83 lakh bales remain as end-March stocks, with a significant portion (100.83 lakh bales) held by CCI, Maharashtra Federation, and trade participants. Cotton exports for 2024–25 are projected at just 16 lakh bales, significantly down from the previous year’s 28.36 lakh bales. Meanwhile, cotton imports are expected to more than double to 33 lakh bales, underscoring growing dependence on overseas supply amid domestic production shortfall. Globally, the U.S. reduced its export forecast by 100,000 bales to 10.9 million bales, with a corresponding rise in ending stocks. World cotton production and consumption have also been revised downward, though stockpiles are set to increase. Technically, the market is under short covering, as reflected by a 1.22% drop in open interest to 243. Cottoncandy is finding support at 54,300, with further downside likely at 54,100. Resistance is seen at 54,850, and a break above could push prices toward 55,200.
BUY COTTONCANDY MAY @ 54300 SL 54000 TGT 54600-54800. MCX
Cocudakl
SELL COCUDAKL JUN @ 2960 SL 2990 TGT 2910-2870. NCDEX
KAPAS
SELL KAPAS APR @ 1590 SL 1600 TGT 1580-1570. NCDEX
