The only Indian missing the cut was Vani Kapoor.
Sharmila (71) starting on the tenth had four birdies against four bogeys and is now 2-over through 36 holes to be Tied-37th.
Gaurika made good amends for her first round 75 with a one-under 70 that brought her right on the cut line at three-over.
Amandeep, who was even par for the first round, overcame a mid-round crisis which had four bogeys, one double and one birdie between seventh and 12th holes. Overall she had four birdies, five bogeys and one double in her 74. Both Gaurika and Amandeep squeezed inside the cutline.
New South Wales amateur Jihye Park and Justine Dreher of France moved into a share of the halfway lead on day two.
Park, 17, from Sydney, shot a bogey free seven-under-par 64 while Dreher carded a 69 in benign conditions at Coffs Harbour Golf Club.
At six-under-par, the pair sit a stroke ahead of French rookie Manon Moll, Norwegian LET rookie Marita Engzelius and LPGA player Pannarat Thanapolboonyaras of Thailand.
Englands Meghan MacLaren, Lydia Hall of Wales, Olivia Cowan of Germany and Camilla Lennarth of Sweden share sixth place on four-under-par.
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