Smith (centre) believes Hearts are very much in the title race

Rangers manager Walter Smith rued missed chances by his side in the potentially crucial defeat to Hearts.

The Ibrox side enjoyed long periods of ascendancy before losing a goal to Ryan Stevenson - Hearts' first telling shot of the match.

And the Tynecastle side are now only two points behind second-place Rangers in the Scottish Premier League.

"The frustration's there in terms of playing so well and not getting a win," Smith told BBC Scotland.

"It was disappointing for us. We were excellent in the first half, especially in the creation of chances. To be fair, Hearts' goalkeeper has had two, maybe three fantastic saves to keep his team in it.

"I felt we were still the better side in the second half but didn't create as many opportunities as we did in the first. Obviously Jim would at half-time make sure his boys tighten up a little bit.

"A scrappy goal to lose, it is typical of a lack of edge in our defending in those situations.

I don't think that there's any doubt that this season Hearts have a capability of sustaining the form they're in just now Walter Smith

"I don't think we've come here very often and Allan McGregor's not had a save to make in the game. It certainly was one of our best performances on this ground for a number of seasons, certainly since I've come back. So, therefore it makes it all the more disappointing that we've lost the game.

"We have to put everything into account. When Nikica Jelavic came on he hit the bar with a fantastic effort. It's a bit frustrating that that's happened."

Asked if the result put Hearts firmly in contention to win the title, Smith replied: "I said that before the game.

"Hearts' run of victories before today's game even was very impressive. Now that they've got their win today, yes it certainly will be for the benefit of Scottish football, I also said that before the game. You don't mind it.

"We have to take it in the context of the season. Hearts are doing extremely well; a very difficult side to beat at home and they're on a great run at the moment.

"We have to pick ourselves up and make sure that we do better in the forthcoming games.

"This is always a tough place for us to come whether Hearts are challengers for the championship or otherwise. I don't think that there's any doubt that this season they have a capability of sustaining the form they're in just now."

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