Ally McCoist's side crashed to a shock defeat at Easter Road as Raith Rovers claimed a 1-0 win to lift the silverware thanks to John Baird's late extra time winner.
United head to Ibrox for a huge Scottish Cup semi-final on Saturday and striker Daly is determined to bounce back at the first opportunity to make amends to the Light Blue legions.
He said: "They turned out in great numbers again for us. They are disappointed and we are disappointed.
"We were probably favourites going into the game, there was an expectation that we were going to go and win the game.
"We haven't taken our chances and they were more than right to air their disappointment at the players.
"We need to try and respond to that now and give them something to cheer now.
"We haven't played to our capabilities but we had enough chances to win the tie.
"It is a game that we will look back on but we need to get it out of our system and analyse where we went wrong and focus on the Dundee United game.
"We can't feel sorry for ourselves now. It is a massive game and a chance to get to a cup final."
Rangers may have had the better of the game at Easter Road but a succession of missed chances came back to haunt them as McCoist and his players were booed off at the end of the game.
But Daly has defended his boss as Rangers look to end a title-winning campaign on a high note.
He said: "Everyone is entitled to their opinion. The manager, at the start of the season, had his objectives to win the league and we have done that very comfortably, dropping four points along the way.
"In terms of that, he has done a fantastic job. It was a cup final yesterday and anything can happen on the day. We haven't played as well as we can do but we still had the better chances to take the game. That is football."