With the tournament having been shortened to 54 holes, the third round will be the final one.
Bhullar, who shot 67 on the first day added three-under 69 to get to eight-under 136, one shy of Renolds, who is at 10-under 134.
Meanwhile Khalin Joshi (67) moved up to tied seventh at seven-under 137 with a flawless second round.
Himmat Rai (71-70) was tied-32nd and was among the three Indians, who made the cut.
Bhullar had a great start with three birdies in first six holes and turned in three-under 33 with four birdies and one bogey. A birdie on 10th brought him closer to the leader, but bogeys on 11th and 15th sat him back. A final birdie on 18th kept him within striking distance of winning a sixth Asian Tour title.
He said, "I'm in the title mix. I played really well from holes one to nine. It got a big dodgy on a few par fours on the back. My two bogeys were a result of a mismanagement with the clubbing. Other than that it is a good solid round."
Miguel Tabuena was also in title mix following a 69 as he shared third place with five-time Asian Tour winner Bhullar (69), Kalle Samooja (67) of Finland and Giwhan Kim (68) of Korea on 136 at the Luisita Golf and Country Club.
The bubbly Renolds, who needs a victory this week to secure playing rights on the Asian Tour next season, is prepared for a final round shootout in the weather-shortened Philippine Open.
The Australian rolled in 25 putts highlighted by a 15-foot eagle putt on the fifth hole to be in the running to claim a first Asian Tour victory.
The 21-year-old Tabuena chipped-in for eagle on the last hole but was disappointed not to take advantage of his birdie opportunities. The halfway cut was set on even-par 144 with a total of 68 players qualifying for the final round.
