The 29W adaptor will certainly power the USB-C charging cable for Apple Watch Series 7, but it is an older model and I am not certain if it will support the fast charge function.
The fast charge function needs the adaptor to support USB-PD (power delivery) and the appropriate voltage/current capabilities for each device. I'm not 100% certain of the minimum ratings required for the watch charger, but I'm pretty sure it only needs 5v (unsure of the current but the 29W adaptor will be fine) AND 9v/minimum 2.2A. The important point for fast charge is that a USB-C adaptor which mentions "USB-PD" should support fast charge. One with the required voltage ratings without the explicit mention of USB-PD *might* provide fast charge but the one way to find out is to test for yourself. If it doesn't work you will still get the slower standard charging rate.