Hi Avinash! I'm just a beginner so not really sure if I no how everything works, but this is my understanding of how watches work. Setting a watch on node a from client c. A change to a happens and a notification is sent over to c. The notification doesn't include any data but just tells the client that something has changed. While the notification is being sent to c another change to a happens, no notification is sent to c. C fetches data/children from a and sees both of the updates to it and may or may not set a new watch.
Hope it helped. Regards Erik