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Bank Nifty index surged over 1% to trade above 59,500 on November 9 with PSU banks leading the gains.

At 2:50 pm on November 9, Bank Nifty was trading 1.2% higher at 59,536.65 with Punjab National Bank, Union Bank of India and Bank of Baroda leading the gains by trading 5%, 4.5% and 4% higher, respectively.

Heavyweight HDFC Bank hit its three-month high and it remained as one of the key stocks limiting the fall of the Nifty 50.

Shares of State Bank of India rose 3% to hit their highest level in over two months of Rs 1,047.70 during early trade. The stock was the top gainer in the Nifty 50 index and also led the gains in the Nifty PSU Bank index, which also rose over 3% to hit its highest level in nearly three months at 8,858.9 points in late afternoon trade

SBI stock has gained 7% since the company detailed its September quarter earnings November 3. For July-September quarter, the country's largest lender's standalone net profit grew over 14% to Rs 23,038 crore, while its net interest income grew nearly 15% on year to Rs 49,143 crore.

Following its results, multiple brokerages maintained their "buy" call on the lender's stock on the back of robust credit and improving margin trajectory, among other reasons. As of Sept. 30, the lender's domestic corporate advances were up 16% on year to Rs 14.39 lakh crore, while domestic retail personal loans were up 15% to Rs 18.25 lakh crore. For July-September quarter, the state-owned bank's domestic net interest margin improved to 3.11% in the September quarter from 3% in the June quarter.

"Index generated a breakout above the last 4 months broad range 58,500-54,000 signalling strength and opens upside towards 60,500-61,000 levels in the coming sessions being the previous major highs.

"Only a formation of lower high and lower low in daily chart will signal a pause in the current strong rally. Immediate support is placed at 58,500-58,000 levels being Friday’s breakout area.

"Short term support is revised higher towards 56,500-56,300 levels being the confluence of the key retracement of current rally and 200 days EMA," said Pabitro Mukherjee, Deputy Vice President-Research, Bajaj Broking.

"Going ahead, Bank Nifty maintains a bullish bias following the decisive breakout and strong weekly close. However, after the sharp rally, some intermittent profit booking cannot be ruled out. Sustaining above the 57,500–58,300 support zone would be important to maintain the positive momentum, while the index could move towards the 59,700–60,200 resistance zone in the coming sessions," said Choice Broking.