Secy of State Michael J. Connolly yesterday took control of ballot counting in the second round of the Somerville-Medford State Senate race, where both candidates are crying foul at what they called gross irregularities in Tuesday's balloting.

Connolly is supervising the vote counting that continued all night at Medford City Hall after state police impounded the ballots, some of them found in waste baskets.

The episode may be the last turn in a bizarre race between indicted State Rep. Vincent J. Piro (D-Somerville) and former Somerville alderman Salvatore Albano. Albanto, who ran a sticker campaign after losing the close Democratic primary to Piro, won Somerville by nearly 2000 votes in Tuesday's elections. But Medford results, contested by both candidates, are not expected until sometime this morning.

Piro, who faced a mistrial last month on extortion and conspiracy charges, denied he is headed for defeat in his attempt to move up from the House to the Senate. "I'm not beaten yet and this election is not over," an angry Piro said last night.

Albano and piro supporters also clashed Tuesday night over attempts by Albano workers to distribute stickers to voters.

The new punch-in ballot and the complications of the write-in campaign are responsible for the problem, said Nancy A. Clover, Albano's legal observer for precinct 53.

Voters apparently did not know where to place the Albano stickers on the new ballots, and vote counters reportedly did not know whether to count the ballots or the stickered envelopes in which the ballots were placed.