Sell Kapas Apr @ 1615 SL 1625 TGT 1605-1595. NCDEX - Kedia Advisory
Cottoncandy
Cottoncandy prices edged slightly higher by 0.09% to close at 55,900 as short covering supported the market after recent declines driven by heavy closing stock estimates and higher domestic production. According to the Cotton Association of India (CAI), closing stocks for the current 2024–25 season are pegged at around 55.59 lakh bales, significantly higher—by nearly 84%—than last year’s 30.19 lakh bales. CAI’s updated projections show pressing numbers for the season rising to 311.40 lakh bales, reflecting a better crop size. Total supply till end-June is estimated at 356.76 lakh bales, combining pressings, imports of 30 lakh bales, and opening stocks. Domestic consumption is seen slightly higher at 308 lakh bales, while exports are projected to fall steeply by 40% year-on-year to 17 lakh bales, indicating muted overseas demand. Interestingly, imports are pegged at 39 lakh bales—more than double last year’s levels—highlighting the changing dynamics of the domestic market. Globally, the U.S. cotton balance sheet for 2025/26 reflects higher production and ending stocks, with planted and harvested areas increasing despite a marginal drop in average yields. Ending stocks in the U.S. are expected to rise by 300,000 bales to 4.60 million, resulting in a stocks-to-use ratio of 32.4%. Technically, the market remains under short covering, evident from a significant drop in open interest by 45.45% to 18 lots, while prices gained 50 rupees. Immediate support lies at 55,770; if breached, prices could test 55,640. On the upside, resistance is likely at 56,110, with a breakout potentially pushing prices to 56,320.
SELL COTTONCANDY JUL @ 56000 SL 56300 TGT 55700-55500. MCX
COCUDAKL
SELL COCUDAKL AUG @ 3200 SL 3230 TGT 3170-3140. NCDEX
KAPAS
SELL KAPAS APR @ 1615 SL 1625 TGT 1605-1595. NCDEX
