MCX Nickel under fresh selling; Support seen at 882.3
MCX Aluminium under fresh selling; Resistance seen at 145.6
MCX Menthol Oil under fresh buying; Support seen at 1787.3
Crude Oil market under short covering; Support seen at 4878
MCX Silver expected to trade in a range between 38318-39158
Technically Cotton market is under long liquidation as market has witnessed drop in open interest by 33.28% to settled at 810 while prices down 100 rupees.
Now MCX Cotton is getting support at 22960 and below same could see a test of 22890 level, And resistance is now likely to be seen at 23090, a move above could see prices testing 23150.
Cotton on MCX settled down by 0.43% at 23040 on expectations of higher output. Anticipation of higher yield this season kept cotton prices under pressure. Cotton crop in North zone is estimated to increase from 5.6 million bales to 5.8 million bales with Punjab producing 1 million bales, Haryana and Rajasthan 2.4 million bales each showing signs of better crop conditions.
There are also expectations of higher yield this season as the pink bollworm infestations is much less as compared to last year. This will help the crop with better quality.
Cotton arrivals in the Southern part of India including Andhra Pradesh and Karnataka were 3,000 bales and 2,000 bales, respectively, against 5,000 bales and 4,000 bales while in Telangana the arrivals were 5,000 bales against 7,000 bales on the previous day.
Meanwhile, fibre arrivals in Upper Rajasthan were 9,000 bales compared to 8,000 bales a day before while in Lower Rajasthan were unchanged at 8,000 bales.
Cotton arrivals in Maharashtra were 6,000 bales compared to 7,000 bales and in Madhya Pradesh were unchanged at 11,000 bales while arrivals in Gujarat were 15,000 bales compared to 19,000 bales on the previous day.
The US Department of Agriculture has further lowered its estimate for India’s ending stock of cotton for 2018-19 (Aug-Jul) to 8.98 mln bales from 11.88 mln bales projected in September, the department said in its monthly report.
Trading Ideas:
–Cotton trading range for the day is 22890-23150.
–Cotton prices gained due to lower production from major producing regions as per Cotton Association of India (CAI).
–In Gujarat, production of cotton in 2018-19 is estimated to be 88.28 lakh bales, which is 14% lower than last year’s production.
–The US farm department, kept its estimate for India’s cotton exports and imports unchanged at 4.4 mln bales and 1.5 mln bales respectively.
–Cotton prices in spot market dropped by 40.00 rupees and settled at 22710.00 rupees.
Courtesy: Kedia Commodities
Source: Commodityonline.com