The encounter broke out near Classic Hospital here when security forces launched an anti-militancy operation, a police official said.
J-K counter-insurgency operation: Arrested Pakistan terrorist killed, three security personnel injured
The operation, which saw nine Army personnel losing their lives in separate ambushes in Surankote and Mendhar on October 11 and 14, entered the 14th day on Sunday.
Terrorists fired upon the residence of Fazal Ahmad at Chandoosa in Baramulla in the early hours of Monday, officials said.
Security forces cordoned off the area and launched a search operation to track down the assailants but no arrests have been made so far, the officials said.
Police have confirmed that firing exchanges between the militants and the security forces have stopped in Hajin area in Bandipora district where militants had attacked a camp of Rashtriya Rifles.