Chikkarangappa S of Bangalore, another rookie, was placed tied second at six-under-64 along with Delhi's Rashid Khan.
Cheema started the tournament with birdies on the first two holes before landing his tee shot within four feet of the pin on the second hole, a par-3.
The lanky golfer then hit a couple of inaccurate tee shots that resulted in bogeys on the third and fifth. Between the two bogeys he had a birdie on the fourth.
It seemed to be the rookie's day as he canned a 25-footer to gain another stroke on the 14th. Cheema made birdie-bogey on the 16th and 17th before signing off with a spectacular eagle on the 18th. He found the par-5 18th green in two shots before sinking two-and-a-half foot eagle putt.
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Cheema, thus equalled the course record of seven-under-63, which was earlier set by Md Zamal Hossain Mollah, Ashok Kumar, Rafick Ali Mollah, Karanjit Singh Sandhu and Gurbaaz Mann.
"My runner-up finish at the BILT Open last month has helped me raise my game. The fact that I'm placed fourth on the Rolex Rankings and lead the Emerging Player of the Year race is added incentive to perform better in my first season as a professional. The key at this course will be to grab maximum opportunities on the greens," he added.