SELL KAPAS APR @ 1600 SL 1610 TGT 1590-1580. NCDEX - Kedia Advisory
Cottoncandy
Cottoncandy futures closed marginally lower by 0.09% at 54,400, reflecting subdued market sentiment amid a mix of supply-side optimism and demand-side concerns. The Cotton Association of India (CAI) slightly revised India’s cotton production estimate upward to 291.35 lakh bales from the earlier 291.30 lakh bales due to higher output in Odisha. However, consumption has been revised downward significantly by 8 lakh bales to 307 lakh bales for the current season, indicating sluggish domestic demand. Exports are also on a downtrend, reduced by 1 lakh bale to 15 lakh bales, significantly lower than last year's 28.36 lakh bales, suggesting weak international interest. On the import side, volumes have been sustained at 33 lakh bales, with 27.5 lakh bales already arriving by April—more than double compared to the previous season. As a result, India's cotton ending stocks are projected to rise to 32.54 lakh bales by the end of the 2024–25 season, up from 30.19 lakh bales last year, adding to oversupply concerns. Globally, the USDA reported minor changes in the U.S. balance sheet with exports reduced by 100,000 bales and ending stocks raised to 5 million bales. Global production and consumption are both down, with lower textile mill use in China and Indonesia dragging global demand. Technically, the market is under long liquidation, evidenced by a 5.13% drop in open interest to 74 as prices declined 50. Immediate support remains steady at 54,000, and a break below could see prices retest the same level. Resistance is at 54,800, with any upward move needing a breach to push toward further gains.
SELL COTTONCANDY JUL @ 54500 SL 54800 TGT 54200-54000. MCX
COCUDAKL
SELL COCUDAKL JUN @ 3000 SL 3040 TGT 2960-2940. NCDEX
KAPAS
SELL KAPAS APR @ 1600 SL 1610 TGT 1590-1580. NCDEX
