The Australians, who need just one more victory to match their record of 16 straight wins, have their work cut out after Sachin Tendulkar blasted 154 not out in India's impressive 532 to give the tourists a 69-run lead on the first innings.

The hosts wiped 13 off the deficit by stumps on day three but remain hopeful of producing something special over the weekend to keep their streak going.

"There is a chance of winning this match," Australian fast bowler Brett Lee told a news conference. "We are in a great spot right now. Both teams can win from this situation.

"We've got through both first innings, now the mind games and tactics start -- that's the reason we all play test cricket. The next two days promise to be two cracking days."

Lee, who finished with five wickets after being made to toil hard on a placid Sydney Cricket Ground deck, said Austalia needed to make a good start on Saturday to set up a declaration before the pitch started to break up.

"The first session of day four will probably be the most important session of the match. It's going to set up the whole game," he said.

"It's going to be the tell-tale of the whole test match. When Ricky Ponting thinks that we've got enough runs, if we bat well, then it's time to go out there and have a crack at them."

POTENTIAL CLASSIC

Tendulkar, meanwhile, said the match had all the makings of a classic.

"I don't want to take anything for granted in this game. Right now it's evenly poised," he said. "There's plenty of cricket left. We need to put the ball in the right areas and it should be backed by good fielding for us to have a chance."

While Tendulkar's innings ensured India surged past Australia's first innings total of 463, the 34-year-old paid tribute to his teammates for their strong response after last week's 337-run loss in Melbourne.

VVS Laxman laid the foundations for the fightback with a brilliant hundred on Thursday while Souruv Ganguly, Rahul Dravid and Harbhajan Singh all chipped in with half-centuries.