Got it working here is the code
$img = "15_pic1.jpg";
$wat = "watermark.png" ;
$wit = "300";
$hei = "300";
$imagestart = @imagecreatefromjpeg($img);
$watermark = @imagecreatefrompng($wat);
list($width, $height) = getimagesize($img);
$imagewidth = imagesx($imagestart);
$imageheight = imagesy($imagestart);
$watermarkwidth = imagesx($watermark);
$watermarkheight = imagesy($watermark);
$startwidth = (($imagewidth - $watermarkwidth));
$startheight = (($imageheight - $watermarkheight));
imagecopy($imagestart, $watermark, $startwidth, $startheight, 0, 0, $watermarkwidth, $watermarkheight);
$thumb = imagecreatetruecolor($wit, $hei);
imagecopyresized($thumb, $imagestart, 0, 0, 0, 0, $wit, $hei, $width, $height);
header("Content-type: image/jpeg"); imagejpeg($thumb);
imagedestroy($image);
imagedestroy($watermark);
imagedestroy($thumb);