Recently I updated Connectify to version 3.1 and it just stopped working.
After sometime of trial and error I found out that Avast Antivirus(I have Avast Internet Security) was blocking some essential ports which Avast uses.
Basically what needs to be done are two things:
1. Enable the Internet Sharing mode in the Firewall settings
2.Enable some Firewall packet rules for the application ConnectifyNetServices.exe