can any one help to explain this with example of nifty options?
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I think, FnO OI data has more meaning in relation with the Price data than the Volume data. First, relate OI data with Price data and then relate Volume data with Price data.
Increase in OI with Increase in Price - Long BuildUP
Increase in OI with Decrease in Price - Short BuildUP
Decrease in OI with Decrease in Price - Long Unwinding
Decrease in OI with Increase in Price - Short Unwinding
​Moneycontrol has a good summary data for the day at the below link:
http://www.moneycontrol.com/stocks/fno/marketstats/futures/oi_inc_p_inc/index.php
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Here is you answer - http://tradingqna.com/624/how-do-i-make-sense-of-total-open-interest?show=624#q624