The Portuguese coach said that his team have enough quality to compete at the right end of the Championship, but admitted that they must improve to maintain their push for Premier League football.
"We are in the fight," Nuno told reporters. "We look at us... we must improve but we are doing very well.
"The team has character, it's solid. All teams must be built from the back, all the projects must be built from the back... and we are building from the back. In our defence, in the club, in the squad."
Wolves have made a solid start to the new campaign under Nuno, winning five matches out of seven in all competitions and sitting in the playoff positions ahead of this weekend's round of fixtures.