Hitesh,
Volumes are very important..without a shadow of doubt.
Now, to cover your positions or not is entirely your choice. It is a very subjective matter and thus cant be answered in a Yes or No.
With more screen exp and more exp into the strategy, you will be able to make out what kind of volume moves to discard and what to honour.
You see today, the NF ws in sideways trend and vols almost dried up. This indicates the smart money is not in the market and some guys in the Pit are just playing Hide and Seek. In such cases, its better to square off your positions or at least cut them down.
on the flip side, a sudden WRB with huge volumes indicate interest from the market movers and we try to ride by being on the same side of the market.
I hope it clears some doubts.
Happy Trading
NIFTY/ BANK NIFTY Option Trade Tool (Buy/ Sell) based on Futures / Spot Prices