Shops, business establishments and petrol pumps were closed in and around the commercial hub of Lal Chowk in Srinagar, while government offices and banks witnessed thin attendance, officials said.
Schools remained closed on account of the on-going winter vacations.
Public transport was off the roads while private vehicles, cabs and auto rickshaws plied normally, they said.
Reports of a shutdown being observed were also received from other districts of the Valley, officials said, adding the police and paramilitary CRPF were deployed at sensitive places across the Valley to prevent law and order problems.
Hurriyat leader Syed Ali Shah Geelani had called for a complete shutdown and peaceful demonstration after Friday prayers against the "mysterious killings of seven youth" in Kupwara by the Army.
Geelani had also demanded an independent investigation into the incident.
Seven unidentified militants, all believed to be foreigners, were killed in an encounter with army and police in Dardpora forests of Lolab on Monday.
Following the encounter, protests broke out in the area as locals demanded that they be shown the bodies to ascertain if there were any locals among the slain militants.
Authorities have imposed prohibitory orders in Lolab area of Kupwara district.
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