Joshi in particular staged a great comeback to cross the first hurdle as he carded four-under 67 at the par-71 Imperial Lakeview Club to get to two-under 141.
He had played a two-over 74 in the first round at par-72 Springfield course. Khalin is now tied 54th.
Chikka, who shot a three-under 69 at Springfield went to two-over 73 at Imperial Golf Club to squeeze inside the cut line, which fell at one-under for two rounds and is tied 71st.
"Before coming here, I had a chat with Anirban (Lahiri) and he had a lot of inputs. He said that this is my first Asian Tour Qualifying School and that I should just go out there and play without any expectations."
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The remaining 11 Indians fell by the wayside, though Kunal Bhasin, the Australian of Indian origin, who plays on Indian PGTI Tour shot a second successive 68, this time on par-71 Imperial to get to tied fifth spot.
Other Indians missing out were Kapil Kumar (69-75), Angad Cheema (70-73), Ajeetesh Sandhu (71-72), Kapil Kumar (69-750, Shubhankar Sharma (70-75), Abhinav Lohan (72-74), Shankar Das (73-74), Karan Taunk (73-76), Abhijit Chadha (77-72), Vikrant Chopra (74-76) and Honey Baisoya (76-75).