I'm searching for a good shared host which can host magento based online store. Any recommendations would become more than welcome.
You will find not good "shared" hosts for Magento.
I would recommend obtaining a VPS.
I have used Aspiration Hosting for any couple of several weeks and haven't had any problems.
To be sure with greencoconut completely, there is however more into it than that. Magento isn't intended whatsoever to operate on hosting that is shared. You will discover yourself seriously crippled in development without SSH use of your server, and hosting that is shared is usually will make using Magento miserable when it comes to speed. If you are planning to become accepting charge cards, you may need a devoted Ip for the site to help you install an SSL for that site. Frequently hosting that is shared cannot provide that. If you wish to get it done the proper way, hosting that is shared isn't a choice.
A shared host is not likely likely to work for Magento.
I would recommend obtaining a VPS (I've mine with ServInt for ~$50/month, however, many others is going to do for any little cheaper).
The bottom line is that you'll require root/spend access, a chance to install some things to create Magento run more easily, tweak PHP and Apache configuration, and also have enough memory allotted for PHP.
Good examples: have total control within the version of PHP, install APC, Memcache, etc.
Obtain a good VPS host. +1 for ServInt, I have used them previously and they are great. Another alternative is SliceHost for beginning out.
Certainly consider http://world wide web.nexcess.internet/magento-hosting
Nexcess is around the official Gold Magento hosting partners list, here: http://world wide web.magentocommerce.com/partners/find/hosting-partners/