Atwal, who was an overnight joint leader with an opening round 66, has a two-day total of four-under 138.
off to a steady start, Atwal found a birdie on the seventh hole to make the turn one-under.
On his way back, Atwal stumbled to bogeys in the 14th and 16th before a birdie on the 18th helped him avoid an over-par finish.
The other Indian in fray, Jeev milkha Singh carded an eventful one-over 73 comprising three birdies, a bogey and a double bogey. Jeev occupied the tied 53rd position with a total of one-under 143.
At the top, South African Brendon de Jonge and American Bill Haas carded second successive 66s to share the lead with totals of 12-under 132.