Dismay describes an emotional state of alarm, fear, or serious disappointment.
You can employ the word dismay to describe how you feel in a variety of negative situations that you doubt you are able to handle.
The different nuances that the term conveys are probably rooted in its origin:
c. 1300, dismaien, "become or be alarmed, upset, or frightened; to confound, break down the courage of by danger or difficulty or fear of calamity, fill with despairing apprehension;" perhaps formed in Anglo-French or Middle English from dis-, here probably intensive (see dis-), + amaien, esmaien, from Old French esmaier "to trouble, disturb."
This is from Vulgar Latin exmagare "divest of power or ability" (source of Italian smagare "to weaken, dismay, discourage"), from ex- (see ex-) + Proto-Germanic *magan "to be able"...
There also was an Old French desmaier (attested only in past participle dismaye), from de-, intensive prefix, + Old French esmaier, which also might be the source of the Middle English word.