The participants in the ceremony distributed sweets among pedestrians and passing cars while shouting chants against Israel and the US.
Some of them were holding pictures of General Qassem Soleimani, the late commander of the Quds Force who was assassinated in a US drone strike in the early days of 2020.
The Palestinian resistance fighters on Saturday launched an audacious incursion into Israel, capturing many soldiers and even senior Israeli officers.
The Israeli media say dozens of Israelis have been killed including soldiers as well.
Western sources described the attack on Israel as an intelligence failure for Tel Aviv, saying the scale of the onslaught by the Palestinians is unprecedented.