Chandigarh-based rookie Feroz Singh Garewal was placed second at six-under-138 after his second round of 67.
The cut was declared at four-over-148 and 53 players made the cut.
Bangalore's Chikkarangappa (69-64), who was overnight tied second, took control on day two with a super 64 as he broke the previous course record of 65 set by Shiv Kapur en route his victory at the Gujarat Kensville Challenge 2013.
The 21-year-old, however, more than made up for it, by landing it within five feet on the 16th, 18th and first, to pick up three strokes.
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Chikkarangappa sank a mammoth 60-footer for birdie on the third before chipping-in to gain another shot on the seventh. He signed off with a 25-feet birdie conversion from just off the green on the ninth.
"It's great to break the course record. I have a good lead at the moment but it's about giving my hundred per cent and sticking to a game-plan from here on."
Feroz Singh (71-67), who was overnight tied ninth, climbed up seven places after posting a 67 which included an eagle on the 14th, four birdies and a bogey.
Digvijay Singh of Gurgaon fired a 67 to share fifth place along with Kolkata's Feroz Ali Mollah and Panchkula's Angad Cheema at four-under-140.
Noida's Amardip Sinh Malik, the round one leader, slipped to tied eighth after a round of 74 that took his total to three-under-141. Noida's Rahul Bajaj, Delhi golfer Himmat Singh Rai and Udayan Mane of Bangalore shared eighth place with Malik.
Kolkata's Rahil Gangjee was in joint 12th at two-under-142 while Delhi's Rashid Khan was tied 27th at two-over-146.