With New Zealand in a tricky spot at 282-7 earlier in the day, Bracewell (29) and Watling (58 not out) helped New Zealand through to 378-9 after the first session. No 11 Trent Boult (six not out) was at the crease with Watling when lunch was called.
The morning began poorly for New Zealand at the Zahur Ahmed Chowdhury Stadium after they resumed play on 280-5.
Nightwatchman Bruce Martin was caught behind for only one from the bowling of Rubel Hossain then debutant Corey Anderson nicked an Abdur Razzak delivery to slip to be dismissed for the same score.
Their dismissals brought together Bracewell and Watling, who put New Zealand's innings back on track, although it wasn't without a hairy moment when Watling was caught off a no-ball from the bowling of seamer Rubel Hossain when he was on four.
Following Bracewell's eventual dismissal, debutant Ish Sodhi came and went but also only made one.
Bracewell is often tagged as a bowling all-rounder but he hasn't lived up to that label in the international arena yet.
There was a patient 20 not out against South Africa in March last year as he saved a test alongside Kane Williamson at the Basin Reserve but too often Bracewell's batting doesn't complement his bowling exploits.
Heading in to this week's test, the 23-year-old had nine ducks from 30 innings and averaged only 10.39 with the bat.
Those numbers are different to his first-class statistics where he averages a shade under 23 and has racked up eight 50s and a lone century.
Bracewell's ability to contribute with the bat will be crucial if he wants to hold his place in the test side in the future.
Given the rise of Northern Districts left-armer Boult plus the ongoing development of Tim Southee, Bracewell needs to do something to keep himself in the selection frame.
Since the highs of bowling New Zealand to victory over Australia in Hobart in December, 2011, Bracewell's stock has fluctuated as a test bowler; he's only taken three wickets in an innings once since last August.
He's not a regular in the one-day outfit and when it comes to the test game, he needs to be able to hold his own at No 8 in the batting order.
Coming in at No 9 today, Bracewell played with the right balance of maturity and aggression.
The young tearaway likes to free the arms and he prefers to score at a rapid rate but with New Zealand in trouble when he came to the crease his runs were valuable.
He was eventually undone by the off-spin of Sohag Gazi but it was the manner in which he scored his runs that should provide hope.
He didn't go out and flay the bat like Southee tends to do and although Bracewell's decision to try to flick a straight one to the onside led to his dismissal, his partnership with Watling was vital in the context of the game.
