You have some ;
s missing in your configs and I don't think you need /applications/.*
on your location
Try something like this:
listen 80;
server_name your.website.com;
location /applications {
proxy_pass http://localhost:8086;
proxy_redirect off;
}
Make sure you don't have something like this:
location / {
root html;
index index.html index.htm;
}