The traders are demanding the arrest of the accused who killed two traders and injure two others during a robbery in Koyalawali Gali Monday evening.
Six armed men came on motorbikes and barged into the jewellery shops in the market, falling under Kotwali police station limits, and opened fire, police said.
The deceased were identified as Vikas and Megh.
The traders also protested on Tuesday and sought compensation for the affected.
The traders, on their way to the crematorium to perform the last rites of jeweller Vikas Agrawal, one of the victims, placed the dead body near Holi Gate, a busy shopping centre, and shouted slogans against the police and the administration, news agency PTI reported.
The traders including an association of jeweler also demanded compensation of Rs 50 lakh and jobs for the kin of the deceased.
Three police officials were suspended following the sensational crime that shocked the holy city
Sub-inspector Prateek Kumar, in-charge police out post Holi Gate, along with two constables have been suspended for the incident, superintendent of police (city) Ashok Kumar told PTI.
He added that local police officials have been given a time of three days t crack the case.