Real Madrid's club record 22-match winning run
was ended by Nicolas Otamendi's fine header as
Valencia came from behind to secure a famous
victory.
Cristiano Ronaldo's penalty put Real in front, his
33rd goal of the season.
But Valencia made it 1-1 seven minutes into the
second half through Antonio Barragan's deflected
shot.
And Otamendi then powered the ball in from a
corner to leave Madrid's place at the top of La Liga
under threat with Barcelona playing Real Sociedad
later.
It was Real's first defeat since they lost to city
rivals and La Liga champions Atletico Madrid
on 13 September.
They will concede top spot to Barcelona if the
Catalans beat David Moyes's Sociedad on Sunday
night.
The result lifted Valencia, beaten just once at home
all season, into the Champions League places.
Cristiano Ronaldo's early penalty was his 26th
league goal of the season
Carlo Ancelotti's side would not have envisaged
that scenario when they took an early lead through
Ronaldo.
After Gareth Bale had been fouled, a free-kick from
Tony Kroos was flicked on by Bale against the arm
of on-loan Manchester City striker Alvaro Negredo.
Ronaldo converted from the spot but then missed
an excellent chance to double Real's lead when he
rounded goalkeeper Diego Alves but, from a tight
angle, shot into the side netting.
Valencia had five players booked in a niggly first
half but struck a post through a deflected Andre
Gomes shot in stoppage time.
And they were the better side in the second half,
levelling when former Liverpool player Barragan
scored his first league goal for the club with a shot
which was diverted past Iker Casillas by defender
Pepe.
Bale was then denied by an excellent Otamendi
tackle at the other end before the Argentina
international won it with a towering header with 25
minutes to go.
Negredo impressed for Valencia, who could have
spared themselves some anxious late moments,
notably when Isco's close-range header was saved
by Alves, had Barragan not wasted another
excellent chance when he shot wide with just
Casillas to beat.
Holders Real will now be looking to bounce back
against their local rivals in the first leg of their
Copa del Rey last-16 tie on Wednesday night, when
Fernando Torres could make his first appearance
since re-joining Atletico on loan.