"All shops, schools and business establishments remained closed in Tral town and surrounding areas today," a police official said.
He said the situation was tense but peaceful as no untoward incident has been reported so far.
Hardline Hurriyat Conference headed by Syed Ali Shah Geelani had called for a shutdown in Tral area following allegations that Khalid Muzaffar was killed by army in a fake encounter on Monday.
Kashmir police chief S J M Gilani yesterday said the investigation had started into the death of two persons including a militant in Tral township of Pulwama district of Jammu and Kashmir, which had sparked off violent protests leaving 32 persons including 20 security personnel injured.
The situation will be clearer once the post-mortem report is received.