Los Blancos remain a point adrift of the summit following last weekend's 5-0 drubbing of Real Betis.
The visitors sit firmly in mid-table after their goalless draw with Osasuna last Saturday.
Real come into this weekend's match off the back of their Copa del Rey victory over Espanyol in midweek.
Ancelotti has no fresh injury or suspension concerns ahead of the match. He is expected to recall goalkeeper Diego Lopez in place of Iker Casillas. Daniel Carvajal and Xabi Alonso could also return to the side after both were rested for the cup win over Espanyol.
Real Madrid: WDWWWW
Possible starting lineups
Real Madrid: Lopez; Carvajal, Pepe, Sergio Ramos, Marcelo; Alonso, Modric, Di Maria; Bale, Benzema, Ronaldo
Granada: Roberto; Angulo, Mainz, Murillo, Nyom; Buonanotte, Rico, Recio, Brahimi; Piti, El Arabi
Sports Mole says: 3-1