That might be vapor leaking past the dipstick.

do you mean oil vapour is coming from lack of seal at oil dipstick tube? but that would not leave a full drop of oil in the small hole behind the screw ?
I will check that the dipstick is inserted all the way to avoid vapor from here.

I don't think the dipstick is out at all, I'm just thinking that vapor that comes leaks past the top of the tube would naturally get pushed backwards to the cam cover.

I haven't seen the whole thing though. Maybe the cam cover gasket is leaking.

Another question regarding the misfire. It happens only occasionally (perhaps a couple of times per day). However, I have noticed a slightly "metallic" sounding engine when I start in the morning but goes away once the rpm"* come down..Is this in any way related to misfire? Can a VERY SLIGHT leak in valve gasket result in misfire..As there might be a slight leak around the screw as the gasket does go around the screw hole.

A couple of times per day doesn't seem like a misfire to me. That seems more like the occasional confluence of accessory load, transmission resistance, and air conditioning compressor engaging all fighting against a tiny engine designed with budget in mind spinning as slowly as the engineers dared. If it was happening a couple of times a second I'd call it a misfire.

A metallic sound for like 30 seconds or a minute or two? That'* a mechanical problem. Any sounds like that should go away in a couple of seconds on a cold engine start. Maybe another second or two if the engine has a couple hundred thousand miles on it and it is below freezing. I'd call this unrelated to misfire.

No.

Thank you for the response. The "misfire" happens when I am stopped at red light so I assume it doesn't have to do with tranny but it is hot here and we have been using the a/c. I will monitor this with a/c off and see if there is improvement.

If you are in gear while stopped, the transmission is creating some load for the engine to deal with. Unless you have a manual transmission, in which case nevermind.

Hi,
This morning the car did it again only once. The RPM'* were a bit low around 730-740 , then car bumps it upto around 750. If it is the tranny, it shouldn't do it if I shift to neutral during stops and when in park ..correct?

I have an automatic transmission

It still might, depending on what this "misfire" actually is.

Air conditioning was turned on, right?

What do the RPMs go down to when this happens?