The attacker started Tuesday night’s 1-1 draw with Celtic in the final match in Group C of the Champions League and created Kelechi Iheanacho’s equaliser.
Having missed recent Premier League ties with Chelsea and Burnley, the Spaniard is thankful for Guardiola’s policy of rotation.
He said: “I am very happy here. When I arrived to City I knew it would be difficult to play with such good players in the squad but the manager is giving chances to everyone, is rotating the team, and I’m happy.
“From a selfish point of view I obviously would like to play every minute, but I think no one can play everything because both the Premier League and the Champions League are very demanding. Rotations are needed and Pep is managing that very well."
With qualification for the Round of 16 already sealed, Guardiola took the opportunity to start a number of youngsters including Tosin Adarabioyo and Pablo Maffeo while Angelino and Phil Foden were named on the bench.
Nolito was delighted to see Manchester City’s youngsters given a chance on the biggest stage.
“They are moving forward step by step. They are very young players with a bright future in front of them and today the manager gave them another chance,” said Nolito.
“We tried to make them feel as confident as possible, we try to help them and hopefully they will help us every time they have the chance to play.”
Nolito insists that City will be confident whoever they draw on Monday 12 December.
He said: “It’s the Champions League and, as always, there are plenty of good teams. We’ll try to compete whoever we may face. We’ll be ready when the moment is there, now we need to focus in the league.”