But you need to know when to invest in such companies. Apple, Cisco Systems etc

Stocks keep hitting highs or lows for a period of time. Like future retail, or Cisco in 1990s

Price movements are very much possible with small/medium cap because of supply and demand. A lot of trading is required to move a large company's stock price, which is unlike in a small cap company.

Buy leading company in the group, like HUL etc

These companies will always dominate the competition because they have a lot of things going on. Dynamic companies should be preferred over older companies.

Always avoid second best or copy cats.

Look for stocks with institutional sponsorships. So pay attention to that.

Pay attention to what the best performing funds are picking. Can checkout morningstar.com

Understand their stock picking strategy.

If market goes does, you lose money. Keep a close eye on general market direction/trend

Check the volume of trades going on, this will tell you about the current mentality of investors

Avoid a lot of experts, thier contradicting views will confuse you.