Possible to hide userlist for certain groups

If you mean by going into the admin panel and chosing the usergroups with a button click no,

However, what you would do is go into the template and add

<xen:if is="{xen:helper ismemberof, $user, 1}"></xen>

Around the relevent section of code and it will only show it to usegroups you specify. Usergroup 1 being admins only.
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