Indian spinner confident his team can still win the third Test

Indian spinner Ravi Ashwin has declared his side capable of making 650 runs and winning the third Test against Australia at the MCG.

But in reality Australia's cricketers hold the upper hand in the Boxing Day Test and Steve Smith has little interest in letting it slip on day three.

India will resume at 1-108 today in response to Australia's first-innings of 530 at the MCG.

Murali Vijay (55no) and Cheteshwar Pujara (25no) showed much fight yesterday afternoon.

The tourists will need to put on a batting clinic if they're to record a remarkable victory to keep the four-Test series alive.

Smith, who scored a masterful 192, noted it would "have been nice to claim a few extra wickets" in the final session on day two.

But the 25-year-old has full faith his attack will claim some early breakthroughs on day three.

"The wicket's still pretty good, but the occasional one takes off a little bit and feels a bit quicker off the pitch," Smith said.

"If we get the ball in the right areas, we'll create a few chances hopefully first thing in the morning."

Offspinner Ravichandran Ashwin hasn't given up hope of a miracle.

"We'll make 650 and try to put them back in," he said.

David Warner suffered an arm injury on Saturday and was unable to field.

"He was struggling to clench his fist," Smith said.

"Hopefully he has a good sleep and feels better in the morning so he can come out and field."