Despite Nugent's topsy-turvy club career Coyle revealed he leapt at the chance to sign him on a six-month deal on transfer deadline day - and wants him at the club for keeps.
"I've always had the greatest belief in David as a top-class player and that's why we've brought him in," said Coyle.
"His two finishes were top class and he has got to use them as a stepping stone. I would love to have him permanently and as long as he's happy I'm sure he can keep producing on the pitch.
"I speak to David on a daily basis but although he's getting stronger I didn't think he was quite ready for 90 minutes. Having said that I told him he still had a big role to play."
Coyle was particularly delighted with the way his side hit back from last week's Anfield mauling by Liverpool and said it once again vindicated the Clarets' style of play.
"The best thing for me is that we've really answered a lot of critics who, after losing at Chelsea and Liverpool, questioned the way we play," added Coyle.
Sunderland boss Steve Bruce bemoaned the way his side fell away after a bright start and admitted the Black Cats deserved nothing from their dismal second-half display.
"The game was there for us to be won and I was delighted at half-time but it was disappointing that we petered away to nothing in the second half," said Bruce. "We were the best team by a distance - we let in a poor goal and bounced back from it. The second-half performance is something we have got to put right.
"We knew Burnley would get better in the second half. To be honest we hardly gave them a kick in the first. For the second half, especially the last half-hour, we weren't there."