Bloemfontein - Kaizer Chiefs coach Stuart Baxter says the Soweto giants are still confident in their hunt for cup glory, despite a 4-3 defeat by Premiership rivals Bloemfontein Celtic in the Mangaung African Cultural Festival (Macufe) Cup in Bloemfontein on Sunday.
AmaKhosi lost narrowly to hosts Celtic who were led by assistant coach Bobbie Solomons in the absence of head coach Clinton Larsen.
It was Chiefs' second loss since the start of the season after 4-1 defeat to struggling Mamelodi Sundowns in the MTN8 Cup quarter-finals.
''Team spirit is still high in the camp and I do not believe the boys' spirit is demoralised," Baxter said.
"If the players' spirit has dampened, I do not think they should be playing football at all.
"Football is about having a positive spirit to achieve objectives.
"We have taken some positives to build on from the game against Celtic."
The former Bafana Bafana mentor was pleased with his team's ability to create and convert scoring opportunities.
''It was good to see the likes of Matthew Rusike and Kaizer Motaung Jnr score goals and, with match fitness, I believe they will make a huge impact,'' Baxter said.
Amakhosi, who are unbeaten in the league this season, face Wits in the first round of the Telkom Knockout in Johannesburg on Friday night.
Solomons, meanwhile, said poor defence was a concern ahead of their Telkom Knockout clash against rookies Chippa United in Cape Town on Sunday.
Celtic's away form has seen them lose three league matches this season against Black Leopards, Wits and Chippa.
They did, however, play to a goalless draw against Chiefs in Port Elizabeth the week before their Macufe Cup victory.
''We are working on improving the situation," Solomons said.
"The results against Chiefs in the two games is a positive sign that we are on the right track.''