is it OK to consider space and time continuous at quantum scale?
While quantum objects have physical quantities such as angular momentum, energy, spin etc., that can be discrete, this does not in any way mean that the space and time where these objects exist is quantized.
Space and time are treated as continuous quantities in standard quantum mechanics. This however, is not a statement or affirmation that the underlying spacetime is continuous. That is, it is possible that the underlying spacetime is quantized, but is irrelevant to the fact that standard quantum mechanics is constructed on continuous spacetime manifolds. There are quantum theories where the spacetime is treated as discrete, a good example being loop quantum gravity.
why traditional calculus is used for studying quantum physics considering that there seems to be no continuum at quantum scale but discrete
Physical quantities like position, momentum, energy etc., are described by eigenvalue problems of the form, for example $$H\psi=E\psi$$ that can contain linear differential operators, for example $$H\rightarrow i\hbar\frac{\partial}{\partial t}$$
even though the eigenvalues $E$ can be part of a discrete or continuous spectrum. That is, we can and do use traditional calculus to describe the evolution of quantum states, even if these states belong to a space describing discrete physical quantities.
It is not a necessary condition in quantum mechanics that the physical quantities corresponding to states, are continuous quantities themselves.