Shift Register only works when hand is close

You put electrickery into the base of the transistor and it turns on. The resistor to +5V provides said electrickery.

You turn on the output of the shift register and it connects that resistor to ground, giving a lower resistance path for the electrickery to go though, so less goes into the base, turning the transistor off.

Think of the output of the shift register like a button. When on it connects the output pin to ground.