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Thursday, August 11, 2022

MCX Cotton under long liquidation; Resistance seen at 23190

MCX Zinc may trade in a range between 165-176

MCX Nickel under fresh selling; Support seen at 880.8

MCX Aluminium expected to trade between 149.9-151.9 levels

MCX Menthol Oil under long liquidation; Support seen at 1775.6

MCX Cardamom under long liquidation

Technically Cotton market is under long liquidation as market has witnessed drop in open interest by 1.28% to settled at 3779.

Now MCX Cotton is getting support at 22920 and below same could see a test of 22810 level, And resistance is now likely to be seen at 23190, a move above could see prices testing 23350.

Cotton on MCX settled down by 0.6% at 23030 on profit booking after prices rose due to declining arrivals due to fag-end of the season. Pressure also seen reports of improvement in acreage and lesser pest attacks in Maharashtra coupled with good crop condition of cotton in main cotton growing states.

Moreover, China cancels import of up to 200,000 bales of India new crop cotton due to fall in International prices. China is more keen to import cotton from Brazil in case of US-China trade war. Brazil may become the second largest exporter of cotton displacing Indian to third position.

In India, cotton acreage till last week was down by 1.9 % on year to 117.7 lakh hac compared to 119.9 lakh ha last year, according to the farm ministry data. The USDA’s FAS has projected India’s cotton production to decline 1.7% on year to 365 lakh bales (1 bale = 170 kg) due to delay in monsoon rains and fall in acreage.

Standing cotton crop in north India – Haryana, Punjab and Rajasthan – is in good condition and pest free as of now except few cases of white fly in Abohar district of Punjab, said a senior official. As of now cotton crop conditions in all the three north Indian states is good and free from pest or any other disease.  Boll formation is good and crop may mature early as weather is favourable, he said. Arrivals are likely to start around September 15.

Trading Ideas:
–Cotton trading range for the day is 22810-23350.
–Cotton dropped on profit booking after prices rose due to declining arrivals due to fag-end of the season.
–Pressure also seen reports of improvement in acreage and lesser pest attacks in Maharashtra coupled with good crop condition of cotton.
–Moreover, China cancels import of up to 200,000 bales of India new crop cotton due to fall in International prices.
–Cotton prices in spot market gained by 140.00 rupees and settled at 23150.00 rupees.

Courtesy: Kedia Commodities             

Source: Commodityonline.com

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