But looking at Madrid's current condition, it seems they are more prepared because in terms of players they are far more complete than Barcelona in this El Clasico. Barcelona are struggling quite a bit, apart from a hectic schedule and having to play against some strong clubs they are also faced with injuries to some of their core players which I'm not too sure about for them.
Real Madrid has 1 key player who gets injured (Courtois). He is expected to return on October 15.
Barcelona has 3 center backs injured, but Kounde seems to be available before the El Classico.
Kessie is also expected to return on October 14.
If all expected players are available before the El Classico match, both teams will have complete key players in their lineups. So, I think both Real Madrid and Barcelona will be well prepared.
Regarding their current performances, I think both Real Madrid and Barcelona look convincing, they are in a good shape. Although Barcelona was just defeated by Inter Milan, I don't think it will bring a big impact on El Classico result. El Classio match is always unpredictable, even Real Madrid is a superior team, it won't guarantee to win. Don't forget that Real Madrid experienced many times lose at home.