MCX Zinc under long liquidation; Support seen at 185
MCX Nickel likely to move in a range of 952.9-999.5
Natural Gas may trade between 193.2-200.6 levels
MCX Mentha Oil under fresh buying; Resistance seen at 1363.6
MCX Aluminium under fresh buying; Support seen at 143
Technically Cotton market is under fresh selling as market has witnessed gain in open interest by 4.39% to settled at 7867 while prices down 40 rupees.
Now MCX Cotton is getting support at 22320 and below same could see a test of 22220 level, And resistance is now likely to be seen at 22560, a move above could see prices testing 22700.
Cotton on MCX settled down by 0.18% at 22420 on profit booking after prices seen supported as government increase minimum support prices for cotton by 26-28%. MSP of cotton (medium staple) has been raised to Rs 5,150 from Rs 4,020 and that of cotton (long staple) to Rs 5,450 from Rs 4,320 per quintal.
There are reports of good export demand and lower pace of kharif sowing in the country. Cotton acreage till last week was down by 30% on year to 32.2 lakh hac, according to the farm ministry data.
The fall in area of cotton was mainly due to delay in arrival of monsoon over Gujarat, one of the largest growers of the commodity. According to commerce ministry data, cotton exports in April is about 8.23 lakh bales, up by 86.13% on year.
Though the Met Department pronounced the official onset of monsoon in Gujarat a week ago, kharif sowing is yet to kick off as the State is yet to receive sufficient rains.
Delayed rains have shrunk the sowing window for cotton by about a fortnight for the largest producer of the fibre crop. However, the trade and growers are optimistic that the targetted acreage will be achieved during the remaining sowing period till July 15, if it rains adequately.
Trading Ideas:
–Cotton trading range for the day is 22220-22700.
–Cotton prices seen supported as government increase minimum support prices for cotton by 26-28%.
–MSP of cotton (medium staple) has been raised to Rs 5,150 from Rs 4,020 and that of cotton (long staple) to Rs 5,450 from Rs 4,320 per quintal.
–Cotton acreage till last week was down by 30% on year to 32.2 lakh hac, according to the farm ministry data.
–Cotton prices in spot market dropped by 60.00 rupees and settled at 20610.00 rupees.
Courtesy: Kedia Commodities
Source: Commodityonline.com
