Everyone can like any team in the Champions League this season, but for Real Madrid everyone also knows that the performance of their players must be able to improve because in this round Real Madrid will face a strong team from England. So it will be quite a difficult match for both of them if they can both improve their squad's performance and apart from that, there will also be a lot of spectators for this match because considering the competitive tension is tougher for each of them.
Real Madrid don't have good memories against Manchester City from the time they last met up. 
At Etihad they got a really huge defeat like 4-0. Considering the way Real Madrid have been playing in the Champions League recently I can't be very positive about them. The performance against Leipzig was just horrible. If Leipzig were a more capable team they would be the side to advance.Ancelotti should prepare his players strongly for this round. I don't think they would lose home in the first leg but the second leg will be way tougher.
Ancelotti has done what needed to be done from the management angle, the rest is left for football to take its course. Without doubts, it will be a very strong and entertaining match full of surprises. If you think it through, both teams have similar pattern of play and scores goal easily and even with styles. I think the whole world is looking forward to that encounter.