Nickel market under fresh selling; Support seen at 913.5
MCX Zinc likely to trade between 169.1-176.7 levels
MCX Copper likely to trade between 411.9-428.3 levels
MCX Natural Gas may trade in a range between 184.8-192.6
Crude Oil market under short covering; Support seen at 4608
Technically Cotton market is under short covering as market has witnessed drop in open interest by 7.6% to settled at 5338 while prices up 40 rupees.
Now MCX Cotton is getting support at 22410 and below same could see a test of 22240 level, And resistance is now likely to be seen at 22680, a move above could see prices testing 22780.
Cotton on MCX settled up by 0.18% at 22580 amid firm demand from traders and stockists at the spot market. Prices also seen supported on anticipation of lower production from major producing belts.
Farmers in the country have sown cotton across 5.46 mln ha in the ongoing kharif season, down 24% from the year-ago period. In Maharashtra, the largest producer, the area under the crop was down 10.3% on year at 1.96 mln ha, according to the data.
It was, however, a whopping 212.6% higher from a week ago as sowing picked up pace due to good rains in parts of the state. Acreage in Gujarat, another major grower, was down 61.1% on year at 492,900 ha due to deficient rains.
So far in the southwest monsoon season, the state has received 95.3 mm of rains, 44% below the normal weighted average of 170.3 mm, data from India Meteorological Department’s Hydromet division showed.
Sowing of cotton in the country is likely to gain momentum as the government has announced a hike of 1,130 rupees per 100 kg in the minimum support price for the fibre crop.
India’s cotton production in 2017-18 (Jul-Jun) is estimated at 34.9 mln bales, higher than 33.9 mln bales in the previous year, according to the government’s third advance estimate. 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.
Trading Ideas:
–Cotton trading range for the day is 22240-22780.
–Cotton gained amid firm demand from traders and stockists at the spot market.
–Prices also seen supported on anticipation of lower production from major producing belts.
–In Maharashtra, the largest producer, the area under the crop was down 10.3% on year at 1.96 mln ha, according to the data.
–Cotton prices in spot market gained by 10.00 rupees and settled at 23180.00 rupees.
Courtesy: Kedia Commodities
Source: Commodityonline.com
