The south coast side have won two of their last nine league meetings against fourth-placed City, with both victories coming at St Mary's.
"We know the next game against Manchester City is a strong challenge, a great team, but it's better to play against Manchester City after two wins, as it gives us confidence," Puel told the club's website.
"We play at home and, with the support of the fans, we can do fantastic work against them."
Puel also urged his team maintain their current form until the end of the season.
"It is just the start of the run-in. We have eight games now and it's very important to stay with this good focus, concentration and rhythm," the Frenchman added.
Puel will be hoping to have Manolo Gabbiadini back in the squad for the City game after the Italian striker missed the side's last three matches with a groin strain.
(Reporting by Aditi Prakash in Bengaluru)
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