well i was already searching in google
however here is what i could finally get from my research
<?php
$watermark = imagecreatefrompng('transparent.png'); //image written "confidential" in it with grey color and white bg
$watermark_width = imagesx($watermark);
$watermark_height = imagesy($watermark);
$image = imagecreatetruecolor($watermark_width, $watermark_height);
$image = imagecreatefromjpeg("photo.jpg"); //photo on which watermark needs to be written
$size = getimagesize("photo.jpg");
$dest_x = $size[0] - $watermark_width - 175;
$dest_y = $size[1] - $watermark_height - 45;
imagecopymerge($image, $watermark, $dest_x, $dest_y, 0, 0, $watermark_width, $watermark_height, 50);
imagejpeg($image,'new_image.jpg');
//uncomment the following two lines if you want to see result directly in browser or use the above line to get the file in directory.
//header('content-type: image/jpeg');
//imagejpeg($image);
imagedestroy($image);
imagedestroy($watermark);
?>