It was a day that had a major upset with Serena Williams crashing out of the tournament after losing to Ana Ivanovic.

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It was a day that had a major upset with Serena Williams crashing out of the tournament after losing to Ana Ivanovic. (AP/AFP)

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Ana Ivanovic came from a set down to win 4-6, 6-3, 6-3, ending Serena Williams' bid to match Chris Evert and Martina Navratilova with 18 Grand Slam titles.

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Flavia Pennetta registered a hard-fought 6-1, 4-6, 7-5 win over Angelique Kerber in one hour 52 minutes.

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Two-time Melbourne finalist Li Na brushed aside Russia's Ekaterina Makarova 6-2, 6-0 win in 59 minutes.

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World No.2 Novak Djokovic, who is bidding for a fifth Australian title and his seventh Grand Slam, crushed Italian Fabio Fognini 6-3, 6-0, 6-2.

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David Ferrer dropped the opening set in a tiebreaker before going on to win 6-7 (5/7), 7-5, 6-2, 6-1 in just under three hours on Hisense Arena.

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Indo-Czech pair of Leander Paes and Radek Stepanek beat Yuki Bhambri and Michael Venus 6-3, 6-2 in the third round.

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The seventh seeded pair of India's Rohan Bopanna and his Pakistani partner Aisam-Ul-Haq Qureshi endured a shocking defeat against the 12th seeded duo of Treat Huey and Dominic Inglot to crash out of the men's doubles event.

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Mahesh Bhupathi and Elena Vesnina also entered the second round of the mixed doubles category.

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Back to Australian Open 2014 photos

Australian Open 2014 Photos

Australian Open: All the highlights from Day 7

It was a day that had a major upset with Serena Williams crashing out of the tournament after losing to Ana Ivanovic.