The CEO of my company due to some misunderstanding of the situation yelled so badly at me and ended up saying"You are fired" in front of the entire office , later he called up the HR and asked me to calm down with a message that I wasn't fired.

However it was very humiliating and since yesterday I am just not able to handle my emotions and tears are just not leaving me...

How to handle this? Should I look for another Job(which I desperately want) but would like to know what is the wise way of handling this...

Oh heck, this has happened to some of us in on way or another. He sort of apologized but I know deep down you would like him to apologize in front of the whole office, right ?

Just because he a CEO doesn't mean he has a lot of smarts and people savvy. Swallow your pride, put a smile on your face and stare everyone down who stares at you.

No, I myself wouldn't look for another job, IMO. The incident will be forgotten by everyone who heard, and probably considered him a real jerk, and you will forget it to you.

I agree with the above. Take a sick day or two if you must, and go back to work.
There are few jobs that don't entail some humiliation.
There must be some satisfaction in knowing that you are somewhat indispensable, right?
Plus you have to have a thicker skin at work than you do in your personal life.
Some CEOs would have just let the firing stand, just because they wouldn't admit to a mistake.