MCX Crude Oil may trade between 5319-5643 levels
MCX Natural Gas likely to move in a range of 237.4-252.6
MCX Copper likely to move in a range of 454.1-466.7
MCX Zinc under long liquidation
MCX Nickel likely to move in a range of 928.6-968.2
Technically Cotton market is under fresh buying as market has witnessed gain in open interest by 0.51% to settled at 2773 while prices up 50 rupees.
Now MCX Cotton is getting support at 22270 and below same could see a test of 22180 level, And resistance is now likely to be seen at 22420, a move above could see prices testing 22480.
Cotton on MCX settled up by 0.22% as CAI projected fall in output in its first cotton estimate while the demand is seen modest in the physical market. Cotton Association of India (CAI) trimmed cotton crop estimates for 2018-19 season to 34.8 million bales from 36.5 million bales in 2017-18.
Cotton sowing was reported at 12.06 million hectares for 2018-19 compared to 12.17 million hectare last year, according to Central government data. Moreover, Gujarat, the largest cotton growing state reported 9 million bales of cotton for 2018-19 crop season against 10.5 million bales in the last year while Maharashtra sees the decline at 8.1 million bales compared to 8.3 million bales a year ago.
Export demand may also rise as cotton yarn exports during fourth quarter of FY19 driven by a more than two-fold increase in exports to China, is partly attributable to the low base effect, as exports were down by 56% in the fourth quarter of FY18, it has also been driven by competitive Indian cotton and yarn prices, reports said.
The drop in output could limit exports from the world’s biggest producer of the fibre amid rising demand from top consumer China and in turn support global prices, which are hovering near their lowest level in more than nine months hit last week.
Trading Ideas:
–Cotton trading range for the day is 22180-22480.
–Cotton prices gained as CAI projected fall in output in its first cotton estimate.
–CAI trimmed cotton crop estimates for 2018-19 season to 34.8 million bales from 36.5 million bales in 2017-18.
–Cotton sowing was reported at 12.06 million hectares for 2018-19 compared to 12.17 million hectare last year.
–Cotton prices in spot market gained by 10.00 rupees and settled at 21960.00 rupees.
Courtesy: Kedia Commodities
Source: Commodityonline.com
