Mustapha Carayol's goal decided the match in favour of the hosts, but other results went the right way for the Forest.
And Davies admits the team are in a better position than he expected at this stage of the campaign - just one point outside the play-off places.
He said: "We're one point behind and this is going to go right to the last game. We've given ourselves no margin of error.
"When I came in if you said to me that with three games to go I'd be three points outside the play-offs, with two home games coming up, then I would have said 'please give me that opportunity'.
"I'm absolutely delighted to have that but I'm disappointed with the results as we've shot ourselves in the foot in the last number of matches by losing that first goal or making individual mistakes.
"But I've got to say, nothing changes, and we're in a very good position where it's still in our own hands."