Which of the following sentence is correct or both of them are correct?
1.If i were a bird, i had flown in the sky.
2.If i had been a bird, i had flown in the sky.
Neither of these are correct. The correct formulation would be "If I were a bird, I would fly in the sky." This is for an imaginary present situation. If you are looking for an imaginary past situation, the correct forumlation would be, "If I had been a bird, I would have flown in the sky."
Also please tell how to express the imaginative past continuous situations.
1.I would have carried my bag , if i were going to market.
This should be expressed as, "I would have carried my bag if I had gone to the market."
Sorry, I misread your question for the last part. You are asking about imaginary past continuous situation. That case would be, "I would have been carrying my bag if I had been going to the market."