New Delhi: Indian stock markets started the week on a positive note as the Sensex and Nifty 50 opened higher on Monday, supported by gains in global markets. The BSE Sensex rose 526.78 points, or 0.67 per cent, to 78,568.37 at the opening bell, while the Nifty 50 climbed 146.50 points, or 0.62 per cent, to 23,734.The rally comes after a lower-than-expected core inflation report from the US, which eased concerns about aggressive interest rate hikes by the Federal Reserve. This positive sentiment had boosted Wall Street on Friday, with Indian markets mirroring the optimism.Despite the strong start, the Nifty 50 Index faces challenges. On Friday, it closed below its 200-day moving average (DMA) for the first time in a month, finishing at 23,587.50. This marks a sharp decline of 5.3 per cent, or 1,254 points, from its recent high of 24,792 in just five trading sessions.

Nifty OutlookAnand James, Chief Market Strategist, Geojit Financial Services said, "With the threat of low volumes looming for the last week of the year, Nifty is expected to attempt a pull back above 200 day SMA, presently at 23837. If relief rallies gain strength, expect 24165, but not much beyond. Alternatively, inability to float above 23700 after early upside attempts, could be seen as a weak signal, but we see low prospects of yet another panic down move. The 21 Nov low of 23265 is likely to stay intact for the week."