The powerful left-hander fractured a bone in his hand during a training session in Oamaru six weeks ago.
He collided with wicketkeeper Derek de Boorder and the end result was a nasty spiral fracture in his right hand.
But the 25-year had a scan on Monday which revealed ''good healing''.
''We're just sort of taking it day by day this week,'' Bracewell said.
''I'm back into gradually hitting balls but we are not really sure what is going to happen this weekend yet.
''It is just a case of seeing how I get through the training week and we'll go from there.''
Otago's next assignment is against Central Districts at the University Oval. The game begins on Saturday.
Fellow top-order batsman Ryan Duffy is also under an injury cloud - he was struck by a bouncer on Saturday and was unable to bat in the game again.
Anaru Kitchen will return from leave but is arguably better suited to bat at No5 than No3 where there is a potential vacancy.
Bracewell's return would certainly be welcomed. He put himself into contention for the national side with a breakthrough season in 2013-14.
He was the second-leading scorer in the first-class competition with 845 runs at an average of 52.81. He posted four centuries in that campaign - only three other players have scored four first-class hundreds in a season for Otago.
Bracewell followed up with a solid effort of 726 runs at 42.70 in 2014-15 but struggled last season with 397 runs at 24.81.
He is too good a player not to bounce back from that disappointment but has to get back on the park first.
''This is the first time I've missed a game due to injury,'' Bracewell said.
''Injuries are a part of sport, so you can't really get too down.
''It is definitely good to be back with a bat in my hand.''
