In the official android documentation it says - "With the remote display APIs, your sender app can now render directly to any Cast receiver, like a Chromecast". What does directly mean here? Does it mean no wifi media channel is required/i.e. the chromecast device and the phone/tablet don't need to be on the same wifi network?
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Yes, the do need to be on the same wifi network. Remote Display enables you to have a View in your Android app on your phone and mirror that view on your chromecast screen.

Ali Naddaf
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So this means I cannot connect to a chrome cast device using the WiFi direct tech? – May 14 '16 at 16:33
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Correct, you cannot. – Ali Naddaf May 14 '16 at 16:41