Sell Kapas Apr @ 1595 SL 1605 TGT 1580-1570. NCDEX - Kedia Advisory
COTTONCANDY
Cottoncandy prices settled higher by 0.4% at 53,210 amid short covering after recent pressure from improved domestic supply estimates. The Cotton Association of India (CAI) slightly raised its cotton production forecast for the 2024–25 season to 291.35 lakh bales, attributing the revision to increased output in Odisha. Despite the marginal upward revision, demand-side data continues to show sluggishness. CAI cut domestic consumption estimates to 307 lakh bales from 315 lakh, citing weak textile industry demand. Exports were also trimmed by 1 lakh bale to 15 lakh, a significant decline from last season’s 28.36 lakh bales. Imports remained unchanged at 33 lakh bales, already surpassing the previous season's total of 15.2 lakh bales, reflecting strong import dependence amid quality and pricing considerations. On the global front, the June WASDE report highlighted tighter cotton supply, projecting world production at 116.99 million bales for 2025–26, down 820,000 bales from May’s forecast. India, the U.S., and Pakistan saw lower output, outweighing a 1-million-bale increase in China. Global consumption is expected to dip slightly to 117.76 million bales, with reductions in India, Turkiye, and Bangladesh offsetting gains in Egypt. Technically, Cottoncandy is under short covering as open interest dropped by 7.14% to 65 lots, and prices gained 210. Immediate support is at 53,040, with a break potentially pushing prices to 52,870. Resistance lies at 53,340; a move above this could test 53,470.
SELL COTTONCANDY JUL @ 53200 SL 53500 TGT 52900-52600. MCX
Cocudakl
SELL COCUDAKL JUL @ 3175 SL 3210 TGT 3135-3100. NCDEX
Kapas
SELL KAPAS APR @ 1595 SL 1605 TGT 1580-1570. NCDEX
