Indian Stock Markets remained range-bound on Wednesday. The BSE Sensex closed with a gain of 90 points at 16,244. NSE Nifty closed at 4,877 with marginal gains. Technology stocks gained quite smartly. Satyam Computers was trading firmly during the day with a gain of more than 5.5%. Infosys Technologies close 6.3% higher compared to earlier close. Wipro was up by almost five percent.

BSE Midcap index was up by 1.5% while the Smallcap index gained nearly 2% towards the end of trading session. Around 12.30 pm, the markets were trading firm and were supported by Technology, Banking and Energy stocks.

Reliance Communications and Reliance Energy were among major gainers in today’s trading session. BSE IT Index was up by 144 points or 3.7 percent.

On BSE 1886 stocks advanced while 758 ended the day with loss. Among major losers were BHEL, Ambuja Cements and JP Associates. Asian Markets closed mixed.

After many trading sessions, the volatility is low in Indian Stock Markets and markets seem to form a trading zone. The stock prices are much lower for many mid-cap companies in which most of small investors have been trapped. So, some of them can consider taking position in these counters at lower levels.

Many Technical Analysts do not recommend taking more position in stocks to average the cost, but at times it pays. If you are sure about the fundamentals of any company which has been battered badly in the recent stock market fall, you can consider buying at lower levels. However, keep realistic targets and keep a long term view for the stock to achieve those targets. Once the markets fall and some stocks bottom out, it may take a long time to touch a high for those stocks.

Also, there may be two outcomes. Firstly, the stocks which have lost significantly in the recent crash, they can bounce back faster if the conditions become good and the global markets rebound. Second outcome could be a rally in different sector which may lead to investors remaining trapped in the stocks. The new sector may offer decent returns, but the stock portfolio of small investor may not offer any gains.