I tried creating a directory everywhere even in root folders. I also created a folder called Glasfish to save the server but still did not work.
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Just select the glassfish folder inside your glassfish folder :)
See this answer for some more details.

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unwichtich
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I did not clearly understand what is meant by glassfish folder inside glassfish folder. Do you mean I have to create two glassfish folder? – RSharma Nov 28 '16 at 13:17
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No, did you even install/extract the glassfish installation? Or do you think creating an empty folder somehwhere will automagically install a Glassfish server? – unwichtich Nov 28 '16 at 13:20
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I did install the glassfish server from within the eclipse. It installed successfully but did not show where did it get installed. My current problem is when I try to add the server. After installation, I clicked the server link that prompted me to choose the Glassfish Sever . But I need to choose the directory for Glassfish location and i got a problem in this step – RSharma Nov 28 '16 at 13:39
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I know, and as I already wrote in the answer, you have to select the glassfish directory inside your glassfish directory, e.g. when you installed glassfish to `/bla/glassfish` then you have to choose `/bla/glassfish/glassfish`. – unwichtich Nov 28 '16 at 13:51