Australia need a further 103 runs to claim victory in the second Test against India to take a 2-0 lead in the series.
The tourists started the afternoon session on 157-7 following their collapse in the morning session as the Baggy Greens' pace bowlers ripped through their batting order.
Shikhar Dhawan, who was forced down the order due to injury, continued his resistance against the potent Aussie attack as he notched his half-century off 101 deliveries.
After reaching the milestone the 29-year-old attempted to power his side into a competitive lead as he took many lofty swings at the bowling of Mitchell Johnson and Josh Hazlewood.
Dhawan along with Umesh Yadav put on a 50-run partnership for the eighth wicket as Yadav did well to fend off rapid bowling from Johnson in particular.
However, Dhawan departed for a score of 80 when he was out lbw to the off spin of Nathan Lyon, which prompted Yadav into action with some big hitting, including two big sixes.
Varun Aaron then fell for just three runs off the bowling of Lyon, while Johnson finished the innings when he had Yadav caught behind for 30 to leave his side a victory target of 128.
Australia got off to a difficult start as Ishant Sharma struck David Warner in the hand with a quick delivery, which seemed to trouble the batsman.
Warner was soon out for just six runs as he edged behind to MS Dhoni, while he was soon followed back to the pavilion by Shane Watson when he top edged the ball straight to the India skipper.
Chris Rogers and Steve Smith guided the Baggy Greens to 25-2 at the end of the afternoon session, leaving them another 103 runs to chase in the final session of day four.
