Hi Bivek:
I am posting the same code that is in the example line graph editor into the JSFiddle with the data density and update interval that matches what we need in our application: http://jsfiddle.net/jolthoff/QwZuf/521/
You should be able to see excessive line rendering over and under the data points in the graph. Compare that effect to the waviness you are describing from frequent updates, for example if you take change the chart type to ‘stepLine’ in the jsFiddle, you should be able to see that waviness but you will not see pixels that appear to be above or below the the datapoints.
Our current solution is to use ‘stepLine’ chart for one second granularity data, but I want you to be aware of this rendering issue and know if there can be a fix for it.