Monday, April 11, 2011

Cotton springing up buying opportunities at NCDEX

AHMEDABAD (Commodity Online): Kapas prices are consolidating since last two months in the broad range of 200 points. Technically, Kapas prices are in uptrend and each dip can be taken as good buying opportunity. In last three weeks prices have corrected by approx 9% from its high. Kapas has good support around 1140.
Cotton prices are falling as this is incline season for millers to buy cotton due to ending of the financial year. They may start fresh buying from next month onwards," said NM Sharma, managing director, Gujarat State Cooperative Cotton Federation Limited (GUJCOT), a farmers’ cooperative.
According to reports, millers have stopped buying even due to non feasible yarn exports, which are affected due to rupee appreciation against dollar and a reduction in the international yarn prices. Cotton arrivals are stable in the markets at present but there are no buyers, hence prices are going down.
“Technically, Kapas is bullish, Short term traders can buy NCDEX Kapas April contract if closes above 1165 for the targets of 1230 with the stop loss of 1135.” said Bharti Navlani, technical analyst with Commodity Online.