Thanks for the response Nick.
This document only tells about implicit handling of entity groups by app engine when its a parent-child relationship. I want to save multiple objects of same type using PeristentManager.makePersistentAll(list) within a transaction. If objects are not same Entity Group this throws exception. Currently I could do it as below but think there must be a better and more appropriate approach to do this -
User u1 = new User("a");
UserDAO.getInstance().addObject(user1);
// UserDAO.addObject uses PersistentManager.makePersistent() in transaction and user
// object now has its Key set. I want to avoid this step.
User u2 = new User("x");
u2.setKey(KeyFactory.createKey(u1.getKey(),User.class.getSimpleName(), 100 /*some random id*/));
User u3 = new User("p");
u3.setKey(KeyFactory.createKey(u1.getKey(), User.class.getSimpleName(), 200));
UserDAO.getInstance().addObjects(Arrays.asList(new User[]{u2, u3}));
// UserDAO.addObjects uses PersistentManager.makePersistentAll() in transaction.
Although this approach works, the problem with this is that you have to depend on an already persistent entity to create an entity group.