The Sky Blues fell to a narrow defeat against Watford at Vicarage Road this afternoon.
After the hosts took the lead through Andre Gray, City went in front after quick fire goals from Gustavo Hamer and Tyler Walker.
However, the Hornets came back and equalised through William Troost-Ekong, before finding a winner through a Ismaila Sarr penalty.
The Sky Blues made a positive start to the game and had the first opportunity through Ben Sheaf, as he had a free-kick from around 25-yards-out, but his set-piece came back off the wall.
Up the other end, Watford winger, Ismaila Sarr whipped in a ball across the face of the six-yard-box and it fell for Tom Cleverley at the back post, but his first time effort went over the bar.
Another chance went over the bar and this time it was Max Biamou who was on the end of a Tyler Walker nod down, but he couldn’t keep his shot on the ground.
The best chance of the first half to this point fell to Max once more and this time he was on the end of a splendid ball into the box by Ryan Giles, but his header went wide of goal.
Max continued to cause the Hornets problems and this time he played a one-two with Walker and the striker played a first-time ball across goal for Biamou but Christian Kabasele made an important challenge at the back post.
City enjoyed the better of the first half and with a few minutes remaining there was a chance for Callum O’Hare, but his shot sailed over the bar.
In the last minute before the half-time whistle, Marko Marosi was called into action for the first time as he had to be alert to deny Cleverley from a tight angle.
HALF-TIME: WATFORD 0-0 SKY BLUES
It took City just a minute to carve through the Watford back four and it was an inch perfect pass by Hamer which released O’Hare and his shot from close range was saved well by Foster in the Watford goal.
From the resulting corner, Leo Ostigard rose highest in the box to meet the ball, but his header went over the bar.
Despite the Sky Blues chances, it was in fact the Hornets who took the lead and it came from a ball down the right-hand-side by Ken Sema which seemed to come off Andre Gray and be bundled over the line to put Watford one up.
However, the lead didn’t last long and City were level through the most outstanding header you will ever see, as Hamer’s effort from 25 yards out looped over Foster and into the back of the net.
Then, almost 90 seconds later, City took the lead in the game and it was a first league goal for Tyler Walker, as he latched onto Biamou’s nod down and slotted the ball past Foster.
However, like Watford’s lead, City’s didn’t last long, and the hosts were level when William Troost-Ekong rose highest in the box to head home James Garner’s corner.
Vladimir Ivic’s side almost regained the lead a few minutes after they had equalised, but Marko Marosi produced a superb save to deny Andre Gray who was through one-on-one.
The Sky Blues battled back once more and this time they awarded a free-kick on the edge of the area, but Max Biamou’s effort went over the bar.
Max continued to cause the hosts trouble all afternoon and again he had a chance, this time a floated ball into the box by Hamer was met by the striker, but he couldn’t steer his header towards goal.
There would be controversy late on in the game as Watford were awarded a penalty for a very harsh call of handball on Callum O’Hare, which Sarr stepped up to take and ultimately scored.
Yellows: Leo Ostigard, Kiko Femenia, Callum O’Hare
Goals: Andre Gray, Gus Hamer, Tyler Walker, William Troost-Ekong, Ismaila Sarr
Watford XI: Ben Foster (GK), Kiko Femenia (67’ Ngakia), William Troost-Ekong, Christian Kabasele, Craig Cathcart, Ken Sema, Etienne Capoue, James Garner, Tom Cleverley (C), Ismaila Sarr, Andre Gray (74’ Deeney).
Unused Subs: Daniel Bachmann (GK), Francisco Sierralta, Nathaniel Chalobah, Domingos Quina, Joao Pedro.
Sky Blues XI: Marko Marosi (GK), Sam McCallum (90’ Dacosta), Michael Rose, Dom Hyam (C), Leo Ostigard, Ryan Giles, Gustavo Hamer (90’ Allen), Ben Sheaf, Callum O’Hare, Max Biamou, Tyler Walker.
Unused Subs: Ben Wilson (GK), Kyle McFadzean, Liam Kelly, Amadou Bakayako, Will Bapaga