Investment in stock market often yields good returns. But making money from capital market is not an easy task. Wise and timely decision will certainly benefit the investor. An active tracking mechanism can lead to timely booking of profits. Even if investment are made by considering different factors such as interest rate, inflation rate, exchange rate, P/E ratios, share price indices etc, investors have got burnt in many occasions. In this paper, we propose a model for making investment decisions in stock market. The model will be ideal for taking decisions to buy or sell or hold a particular stock by considering the market conditions prevailing at different points of time. The model will also help in identifying good stocks for retail investors for whom preservation of capital is as important as earning decent returns from investment.