Why do you need positional feedback. If you set the Mach DRO to zero, it will keep track of where the axis is - if you are using stepper motors it simply counts and says I have moved so far and puts it up on the DRO.
If the A axis is rotating I don't know how many steps per unit you have it set on, or even what your units are, but that is easy enough, and if that is 360 degrees, then Mach 3 can put out the correct number of pulses to turn the wheel a known amount. Since it is rotary, you can have it set at anything - 10, 36, 100, 180, 360 etc. Mach 3 will keep track of this position on the A axis DRO in the units of your choosing.
The only thing you need to know is a zero position. You can either set this manually, before you start machining, which I find adequate for most of my machining, and providing you don't force the axis and loose steps, it is absolutely accurate,
I have no idea what a pizza wheel is - do you mean a rotary table - if so, you could use a reflective optical sensor on the side of the table. I used one on my spindle, the reflective part being a small "mirror" from my grand-daughters box of "stickies". It works perfectly and can be connected by a single wire to Mach 3.