They slipped to a seven-wicket loss to India in Zimbabwe.
The Baby Black Caps, whose first two games were ruined by rain, were dismissed for 135 in the 37th over in Bulawayo, and the rampant Indians cruised to 130 for three to win on the DLS method and make it three from three at the tournament.
New Zealand were asked to bat and, after a couple of rain interruptions, their innings was reduced to 37 overs.
Otago top-order batters Hugo Bogue (4) and Tom Jones (2) were early victims of RS Ambrish, who finished with the excellent figures of four for 29 from eight overs.
New Zealand slumped to 22 for five when Jacob Cotter (23), Callum Swanson (37 not out) and Selwin Sanjay (28) fought back and ensured a semi-respectable total.
India were set a revised target of 130 and looked unflustered in their chase despite the early loss of Aaron George, who was bowled for seven by Otago seamer Mason Clarke.
IPL sensation Vaibhav Sooryavanshi (40) and Ayush Mhatre (53) knocked off the bulk of the runs as India celebrated victory in the 14th over and secured top spot in Group B.
Clarke took a catch and grabbed the wicket of Sooryavanshi.
New Zealand have still qualified for the next round as the third-placed team in the group, and will play Pakistan tomorrow night.
