Chiragh ended the day at three-under 68, two shots behind leader Thailand's Atthaphon Sriboonkaew (66).
Among other Indians, Khalin Joshi (71) was tied 22nd, while SSP Chawrasia, Digvijay Singh and Rashid Khan carded two-over 73 and were tied 42nd.
Himmat Rai (77) continued to struggle in 107th place, while Rahil Gangjee (80) and S Chikkarangappa (80) were tied 133rd and Angad Cheema was even further down with 82.
The 31-year-old India traded five birdies against two bogeys.
"I made a couple of good saves and I made a couple of good putts. The longest putt was the 15-footer for birdie on the 10th hole. I hit the ball pretty good. The wind was swirling out there. It was really windy throughout the round. It was so windy that you can't really tell which direction the wind is coming from," he added. "Considering all that, I think I really played well today."
Thailand's Thaworn Wiratchant, a two-time winner of the Queen's Cup in 2012 and 2014, reigning Asian Development Tour (ADT) Order of Merit champion Pavit Tangkamolprasert and Prayad Marksaeng, also a previous winner of the Queen's Cup in 2013, were amongst those bunched in 10th place following matching 69s.
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