Promotion-chasing Forest had not lost a regular season match on home soil since September 2009, but suffered defeat this afternoon courtesy of Matty Fryatt's 64th-minute strike.
The Reds slipped to fifth in the npower Championship table as a result and are now without a win in four.
However, an upbeat Davies said: "We are joint-top in terms of the most wins since January. We have lost, before now, two games in sixteen matches. We were 36 games undefeated at the City Ground and we've got nine players missing through injury. My glass is half full.
"I've got to be realistic. We've lost a bit of fluency, of course, with nine injuries. That's not an excuse, that's a fact. But we are in the top six - three points off second place. There's a long way to go but I'm delighted to be where we are.
"I'm very proud of the home record. We were never going to go on forever with this run, it had to come to an end sometime. But I thought in the first half we deserved to be in front and, while I don't think we deserved to win in the second half, we certainly never deserved to lose."