England in control after bundling out India for 316
At break, the visitors were in an advantageous position with captain Alastair Cook (17) and Nick Compton (5) unbeaten at the crease.
India's first innings total certainly seems inadequate on a batting-friendly flat Eden track.
Resuming on 273 for seven, overnight batsman Dhoni, starting on 22, went on to hit a fine 52 to help India cross the 300-run mark. But Monty Panesar's two wickets in the first five overs of the day enabled England dictate terms.
Pacer James Anderson, after starting the proceedings, created pressure from one end, while Panesar bowled cleverly using a lot of variations.
With two wickets today, Panesar's figures read an impressive four for 90, while Anderson, though could not add any more wicket to his yesterday's tally, finished with three for 89.
India had a jittery start as Zaheer Khan, on 2, edged the ball at the second slip in the third over of the day but only to be dropped by Graeme Swann off Anderson's bowling.
Anderson once again troubled the hosts with his reverse swing but was unlucky in giving his team the first breakthrough.