The court, however, said that she can move in other parts of Srinagar and it would be subject to prior permission from authorities,if needed.
Her petition was heard by a bench comprising Chief Justice Ranjan Gogoi and Justices S A Bobde and S A Nazeer.
On Wednesday, Iltija moved the apex court seeking directions to the authorities to allow her to meet her mother who is under detention following the abrogation of Article 370 from the state.
Iltija submitted that she is concerned about her mother's health as she has not met her in a month.
Her advocate Aakarsh Kamra said the relief sought in the petition is similar to what CPI(M) general secretary Sitaram Yechury was granted by the apex court on August 28 to meet his ailing party colleague Mohammed Yousuf Tarigami.
Ten days after the military clampdown in the valley, Iltija had written an open letter that Kashmir has been engulfed in "clouds of darkness" ever since the special status given to Jammu and Kashmir was abrogated and feared for the safety of Kashmiris.
In the open letter she said that she was also detained despite being a law-abiding citizen and hope that she was not punished for raising questions about her fundamental rights.