Sell Kapas Apr @ 1600 SL 1615 TGT 1585-1575. NCDEX - Kedia Advisory
Cottoncandy
Cottoncandy prices recovered by 1.6% to close at 53,890, supported by short covering after a recent dip triggered by a slight upward revision in India’s cotton output estimate. The Cotton Association of India (CAI) marginally raised production to 291.35 lakh bales from 291.30 lakh bales, driven by better-than-expected output in Odisha. India’s export outlook also appears weak, with CAI reducing its export forecast by 1 lakh bale to 15 lakh bales, sharply down from 28.36 lakh bales last year. Meanwhile, imports remain notably higher, with 27.5 lakh bales already imported by April—more than double last season’s figure—adding to domestic supplies. Ending stocks are also expected to climb to 32.54 lakh bales by September, up from 30.19 lakh bales a year ago, indicating a comfortable supply scenario ahead. Globally, the USDA’s June WASDE report showed a slight tightening in the world cotton balance sheet for 2025–26 as global production was revised down by 800,000 bales, mainly due to cuts in India, the US, and Pakistan. The US crop is forecast to shrink to 14 million bales, marking one of the smallest harvests in the past decade due to weather disruptions in the Delta region. Technically, the market is under short covering as open interest fell by 1.61% to 61 lots while prices gained 850. Immediate support is at 53,580, below which prices may test 53,280. Resistance is now seen at 54,100, and a break above could lift prices towards 54,320 in the short term.
BUY COTTONCANDY JUL @ 54200 SL 52500 TGT 53900-53700. MCX
COCUDAKL
BUY COCUDAKL JUL @ 3120 SL 3080 TGT 3160-3190. NCDEX
KAPAS
SELL KAPAS APR @ 1600 SL 1615 TGT 1585-1575. NCDEX
