In this tutorial, I will use these photos:

Photo 1:



Photo 2:

Open Photo 1, press Ctrl+J to duplicate it and name it is Sharpen

Select layer Sharpen then go to Filter -> Sharpen -> Sharpen Edges

Apply this filter once more by pressing Ctrl + F

Continue to go to Filter -> Sharpen -> Sharpen and you will get the result like this:



Press Ctrl + J to duplicate layer Sharpen and name the new one is Screen

Change its blend mode to Screen



Open Photo 2 then choose Elliptical Marquee Tool

Make a selection like this

 
Hold Ctrl and drag selection to Photo 1 then go to Edit -> Transform -> Scale to resize the image as you like (change its blend mode to Screen too). 



Open texture below:

 

Put it on the top of layer palette then change its blend mode to Screen, you will get:

Add some text to image and you will get the final result:

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