An encounter broke out between militants and security forces during a cordoning operation in Chanapora area of the city on Saturday, police said.
The encounter began in the early hours of the day after security forces launched the cordon and search operation in Methan locality, the police said.
There were no reports of any casualties so far in the gun battle, it said.
The operation was launched after a militant managed to escape from an encounter in nearby Natipora area. One ultra was killed in firing on Friday.
The operations comes amid the targeted killings of two Pandits among seven other civilians in the past one week. Widespread protests were held in Jammu and Kashmir against the killings.
Meanwhile, district commissioners have asked the Pandits living in designated enclaves in parts of the Valley to restrict their movement for the time being and avoid travelling to volatile pockets.
Several schools, especially those located in volatile pockets in the Valley, have offered Pandit employees 10 days of leave period, an official said.
