The visitors conceded five times in the first 45 minutes at the Bernabeu as their recent impressive run in La Liga came to an end against a Madrid side that were without a number of key players.
Nolito has conceded that Sevilla "could not cope" with their opponents' attacking quality, but the former Manchester City attacker is confident that his team will bounce back.
"It was embarrassing for us," Marca quotes Nolito as saying. "The first goal of the game was crucial as it opened up the match and meant we were chasing the game, but it was an uphill battle of course.
"They have a lot of attacking quality in their ranks and it killed us, we could not cope with it but now the challenge is to move on and bounce back as quickly as possible.
"We have an important match coming up against Levante and we must approach this with positivity and forget about the damage of this one game."
Sevilla have been drawn against Manchester United in the last-16 stage of the Champions League.