Distorted Image Edge in Photoshop

Hello all.

I’l trying to develop an icon by following one of tutorial available on the web.

The problem I’m facing is that, the edge of my image is being distorted, and it ain’t being smooth as it should be.

So how can I make then smooth and look somewhat good.

Here I’m attaching theimage .

I guess I’d just draw smooth-edged circles over the jagged ones, apply a similar color/effect (so anti-aliasing fits well) and cut or mask them to reveal the inner portions of the image.