While the market is steady the small cap index is showing some strain with a cut of 0.5% yesterday. Perhaps there is some selling happening in small caps in response to the SEBI advisory to mutual funds flagging concerns of excessive valuations. Weakness in the small cap segment is likely to continue. The Chinese National People’s Congress which has begun will be keenly watched by the markets. Announcements relating to the initiation of growth stimulating reforms have the potential to attract big money into their stock market, which is now trading at cheap valuations. Therefore, it is important to watch out for developments in China.While there is fundamental support to the Indian stock market, high valuations can constrain further rally. The market is likely to remain range-bound in the near-term. As expected RIL has crossed Rs 3000 level.