@harshalitalele We don't have rotation support for overlays. If you're just using the straight HTML overlays (the ones built into OSD) you can apply css transforms to them if you want.
There are a number of other overlay options in http://openseadragon.github.io/#plugins ... None of them directly support rotation either, but they all have ways you can rotate (e.g. SVG supports transforms, as does canvas, etc.).
@harshalitalele Looks neat! I'm happy to be a sounding board for specific issues. Perhaps others would be interested in diving in more. It might be helpful to give some specifics for what you are hoping for.