Why does sun appear in oval shape during sunset and sunrise? explain with the help of ray diagram.

Hi,
 mangal.ankur.ankur8 has given absolutely correct answer. So, you can refer to it.
Here are few more things I like to add,
This is not just the case with the sun but is also with the full moon.
The shape of the disc of the sun or full moon at rising or at setting is oval (elliptical) because of the multiple refraction of light ray passing through the atmosphere. Multiple refraction occurs because the refractive index of earth’s atmosphere varies with distance.
 
Light from the sun or moon after travelling through vacuum enters into our atmosphere. As light passes from a rarer medium to a denser one, its course is deviated towards the common normal. This deviation of light is called Astronomical refraction.
This effect is maximum at the time of rising or setting of the sun or moon. But this effect of refraction is more on the horizontal diameter than the vertical diameter. So, the shape of the sun or full moon at rising or at setting is oval.
 
Hope this helps,
mangal.ankur.ankur8. Good answer. You get a thumb up. Keep posting!!

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it is due 2 the refraction faced by the light particles

  orrrrrrrrrrrr

It's an optical illusion caused by the bending of the light rays as they pass through the Earth's atmosphere. In fact, when the Sun appears oval like that, the Sun is actually BELOW the horizon, the the atmosphere is refracting the light around the curvature of the Earth. The reason that sunrises and sunsets look red is because the red light is bent, or refracted, more than other colors - so the red rays go further around the Earth while the other colors pass on through the atmosphere and out into space again.

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