Portugal international Goncalo Guedes fired Valencia into the lead in the 35th minute with a thumping shot from inside the area which was too powerful for Madrid goalkeeper Keylor Navas.
Cristiano Ronaldo struck twice as leaders Real Madrid subdued Eibar 4-0 on Saturday while Lionel Messi set a La Liga record of 253 goals with a hat-trick in second-placed Barcelona's 5-1 rout of Sevilla.
Real Madrid equalled a Spanish record of 39 games unbeaten in all competitions by crushing struggling Granada 5-0 on Saturday to go six points clear at the top of La Liga.
Real Madrid crashed out of the King's Cup quarter-finals 4-3 on aggregate after being held to a 2-2 draw at Celta Vigo on Wednesday in another major setback for the stuttering European champions.
Atletico Madrid have been unable to repeat the magnificent achievements of last season in this campaign but can congratulate themselves on a job well done if they secure a lucrative Champions League berth on Saturday.
The hard-fought win took Zinedine Zidane's side on to 77 points after 34 games, seven clear of second-placed Barca who visit in-form Villarreal later on Sunday.
Barcelona's lead at the top of La Liga was cut to two points on Saturday as they squandered a two-goal advantage to draw 2-2 at Sevilla while Real Madrid powered their way to a 3-0 home win over Eibar.
From comments about the healthy relationship shared between Barca trio -- Messi, Suarez and Neymar, to questions about his goal drought in away matches, an angry Ronaldo had the response to it all
Meanwhile, Real Mallorca made a dream return to La Liga with a 2-1 victory over Eibar at the Estadi Son Moix on Saturday, less than two months after sealing back-to-back promotions to rejoin Spain's soccer elite.
Barca feel familiar February blues as tiredness sets in
Morata, who had scored his first goal for the club in last week's 2-0 win over Villarreal, rose to head home from close range on the half-hour mark following a corner which had been flicked on by Atleti captain Diego Godin.
The Frenchman nodded home an Isco cross after 55 minutes against a well-organised Granada side that attacked with pace.
A summary of Sunday's action in Serie A and La Liga.
Images from La Liga matches played on Monday.
Gareth Bale marked his return to action after a long injury layoff by sealing a 2-0 victory for Real Madrid over Espanyol on Saturday to provisionally stretch Zinedine Zidane's side's lead at the top of La Liga to three points.
Real Madrid are determined to create an intimidating atmosphere for visitors VfL Wolfsburg as they try to overturn a two-goal deficit in Tuesday's Champions League quarter-final second leg at the Santiago Bernabeu stadium.
News of all that's transpired on and off the football field
Barcelona have one hand firmly on the La Liga title after winning 2-0 at Alaves on Tuesday, leaving them 12 points clear at the top of the table with four games to play.
Images from the La Liga match played between FC Barcelona and Sevilla on at Camp Nou on Sunday
Barcelona's Champions League last-16 second leg match with Napoli scheduled for March 18 will take place without spectators due to fears over the spread of the coronavirus, a club spokesman said on Tuesday. The match will take place at Camp Nou after a 1-1 draw in Napoli, but no supporters will be allowed to enter the stadium.
A Neymar double, a spectacular volley from Luis Suarez and a goal for Lionel Messi saw top of the table Barcelona's unstoppable strike force sweep aside Real Sociedad 4-0 in La Liga on Saturday.
Here are five talking points from the weekend's La Liga action:
Real play Athletic Bilbao while Barcelona visit Real Sociedad in fixtures that have often proved to be among their hardest away trips over the last decade.
News of all that's transpired on and off the football field
Images from football matches played in La Liga and Serie A in Spain and Italy on Wednesday.
Barcelona's inconsistency over the season had cost them the La Liga title, coach Luis Enrique has said.
Barcelona's star striker Lionel Messi, who completed a decade at FC Barcelona on Thursday, used social media to reach out to his fans, thanking them for their support.
Champions Barcelona lost 2-0 at Celta Vigo while Getafe earned an important 2-0 win over Girona in their bid to secure Champions League qualification.
Real Madrid's stuttering season continued as they were reduced to 10 men and then slumped to an 11th La Liga defeat of the campaign by going down 3-1 at Real Sociedad.
Barcelona need to avoid getting sucked into the Spanish obsession with El Clasico when they face Ajax Amsterdam in the Champions League on Tuesday.
Barcelona equalled a club record of 12 consecutive league wins as Neymar and Lionel Messi were among the scorers in a 6-0 thrashing of struggling Getafe 6-0 at the Nou Camp on Saturday.
Barcelona are on the verge of completing a reported 30 million euro ($33.57 million) move for Spain international Paco Alcacer from Valencia after the striker arrived for a medical with the La Liga champions on Monday.
Hellas Verona produced a huge upset by coming from behind to beat Serie A leaders Juventus 2-1 on Saturday, inflicting a third defeat of the season on the Italian champions. Cristiano Ronaldo set a new Juventus record by scoring in a 10th consecutive league game to put the visitors in front at the Stadio Marc'Antonio Bentegodi after 65 minutes.
News of all that's transpired on and off the football field
La Liga leaders Barcelona earned a narrow 1-0 win over Real Valladolid to move seven points clear at the top, while Real Madrid lost 2-1 at home against Girona to fall to third behind Atletico Madrid.
Real Madrid suffered a shock 1-0 home defeat to Real Betis on Wednesday as an inspired performance from their former goalkeeper Antonio Adan and a stoppage-time winner from Antonio Sanabria stunned the Liga champions.
Marco Asensio's strike earned Real Madrid a 1-0 win over Espanyol to send them top of La Liga and Thomas Lemar scored his first goal for Atletico Madrid in a 2-0 victory at Getafe on Saturday.
Striker Aduriz opened the scoring in the sixth minute at the San Mames with a trademark header before midfielder Garcia, who joined from Atletico Madrid last month, nodded in a second in the 24th minute.
Real Madrid and Barcelona pulled two points clear in La Liga when Cristiano Ronaldo set a club scoring record in Real's 3-0 stroll against Levante and Neymar hit four as Barca beat Rayo Vallecano 5-2 on Saturday.
Lionel Messi squeezed home a stoppage-time penalty to grab a 3-2 win for champions Barcelona at Valencia in a thrilling and controversial La Liga match on Sunday.
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